Peoquot and Art get the dreaded "Wells' Notice"

I would suggest, all you nubes that worship these scumbags pay heed. Criminal will be next. If you are so inclined, read Aguirre's statement to the Senate Judiciary Committee. It is unbelievable:


Hedge Funds »
Hedge Fund Set to Face Insider Trading Charges
August 12, 2009, 12:41 pm

Pequot Capital Management, the once-prominent hedge fund run by Arthur J. Samberg, has been notified by the Securities and Exchange Commission that it intends to file civil insider trading charges against the firm, according to a letter sent to Pequot investors on Monday.

“The Commission staff intends to recommend that the Commission bring civil injunctive actions against them, alleging that they violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder,” the letter said, referring to Mr. Samberg and the firm. (Read the full text of the letter after the jump.)

A person close to the investigation said Mr. Samberg and the firm received the so-called Wells Notice from the S.E.C. about six weeks ago. It’s unclear whether they are in settlement negotiations with the commission, but Mr. Samberg said in the letter that “the Wells Notices and any resulting enforcement action are without merit” and that they intend to defend themselves vigorously in the matter.

In May, Mr. Samberg, a veteran of the hedge fund industry, surprised investors and employees by saying he would shut down the firm because of a reopened government investigation into possible insider trading. A spokesman for Pequot declined to comment.

The firm once invested $15 billion and most recently managed roughly $3 billion. The S.E.C. and the Justice Department recently resurrected their investigation, which focuses on Pequot’s trades in Microsoft securities in 2001. That move followed revelations that Mr. Samberg had paid $2.1 million to a former Microsoft employee, David Zilkha, in 2007. Mr. Zilkha had worked briefly for Pequot six years earlier. The payment came to light recently during Mr. Zilkha’s divorce proceedings.

August 10, 2009

Dear Investor:

We would like to make you aware that Pequot Capital Management, Inc. and Art Samberg have received Wells Notices from the staff of the Division of Enforcement for the Securities and Exchange Commission (the “Commission staff”) relating to their trading in Microsoft securities over 8 years ago. The Commission staff intends to recommend that the Commission bring civil injunctive actions against them, alleging that they violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In connection with the contemplated actions, the Commission staff may seek, among other things, a permanent injunction, disgorgement (plus prejudgment interest), a civil penalty, and/or other available remedies. With respect to Art, the Commission staff also intends to recommend that the Commission authorize the institution of administrative proceedings against him pursuant to Section 203(f) of the Investment Advisers Act and may seek an investment advisory bar.

We believe the Wells Notices and any resulting enforcement action are without merit and intend to defend the matter vigorously.

We do not believe this development impacts the process of liquidating the remaining securities in the Pequot funds.

Sincerely,

Pequot Capital Management, Inc.

– Zachery Kouwe

 

A civil complaint seems awfully light punishment. Aren't these the people who got that enforcement attorney canned because he blew the whistle on their case being deepsixed? I would think a grand jury should be looking at them and the SEC officials they conspired with.

Of course, on the other hand, since Mark Cuban can apparently get away with what most people would see as blatant insider trading, maybe they should just forget the whole thing.

 

Looks like the ex-wife is going to screw him over big time!

 

Oh, I think it's a long way from over. I've been watching a lot of Bloomberg, as I guess a lot of others have, too, and there are a lot of comments about how Wall St. is really on the outs in DC, and with the flyover folks. The Feds prosecute what they can win. That's why UBS is so important. You can't fight tax evasion. It's black and white.

The only question out there now is, if they prosecute everyone who needs prosecuting, and it's most every HF out there, and most every broker,could you collapse the system? However, who wants to partake in a cover up at this point?