Post by jcline on Jun 28, 2006 0:12:06 GMT -4
SEC whistle-blower ordered to return inquiry documents
By James Doran
A FORMER US Securities and Exchange Commission (SEC) official, who was dismissed and turned whistle-blower during an investigation into allegations of insider dealing at a $7 billion (£3.8 billion) hedge fund, has been ordered to return documents he took from the American market regulator or face tough legal penalties.
Gary Aguirre, the lawyer who last year launched an SEC investigation into allegations of insider dealing at Pequot Capital Management, is understood to have bundles of documents containing information about the case.
He was sacked for refusing to conduct the inquiry in a proper manner.
Mr Aguirre has been asked to appear today before a Senate judiciary committee hearing that is looking into hedge funds, to discuss his findings on the Pequot inquiry and to answer questions about the circumstances of his dismissal from the SEC.
Mr Aguirre has written an 18-page letter to several US senators regarding the case and has revealed an outline of the evidence that he says he gleaned regarding Pequot Capital Management and certain trading practices that he believed could have been illegal.
During the inquiry, Mr Aguirre asked the SEC to subpoena John Mack, the former chairman of Pequot, who is now the chief executive of Morgan Stanley, the investment bank. The SEC declined, saying that Mr Aguirre did not have sufficient evidence or grounds to question Mr Mack under oath.
However, Mr Aguirre persisted and his refusal to leave Mr Mack out of the inquiry led to his dismissal.
SEC chiefs now believe that Mr Aguirre has in his possession sensitive documents pertaining to the Pequot case and his attempts to subpoena Mr Mack. The agency has asked him to return the documents, but has yet to receive a formal response.
An SEC source close to the Pequot case told The Times: “We have asked Aguirre to return anything that he has in his possession that would be considered property of the SEC, that would include documents, tapes, depositions, anything to do with the case. His answer so far has been ‘we’ll get back to you on that’.”
The SEC does not know which, if any, documents Mr Aguirre has taken, the source added. Its lawyers are to demand that anything taken from the SEC should be returned and not made public.
Mr Aguirre could not be contacted for comment. Pequot denies any wrongdoing. Mr Mack says that he has never been contacted by the SEC or any of its lawyers in the matter.
business.timesonline.co.uk/article/0,,13129-2246557,00.html
By James Doran
A FORMER US Securities and Exchange Commission (SEC) official, who was dismissed and turned whistle-blower during an investigation into allegations of insider dealing at a $7 billion (£3.8 billion) hedge fund, has been ordered to return documents he took from the American market regulator or face tough legal penalties.
Gary Aguirre, the lawyer who last year launched an SEC investigation into allegations of insider dealing at Pequot Capital Management, is understood to have bundles of documents containing information about the case.
He was sacked for refusing to conduct the inquiry in a proper manner.
Mr Aguirre has been asked to appear today before a Senate judiciary committee hearing that is looking into hedge funds, to discuss his findings on the Pequot inquiry and to answer questions about the circumstances of his dismissal from the SEC.
Mr Aguirre has written an 18-page letter to several US senators regarding the case and has revealed an outline of the evidence that he says he gleaned regarding Pequot Capital Management and certain trading practices that he believed could have been illegal.
During the inquiry, Mr Aguirre asked the SEC to subpoena John Mack, the former chairman of Pequot, who is now the chief executive of Morgan Stanley, the investment bank. The SEC declined, saying that Mr Aguirre did not have sufficient evidence or grounds to question Mr Mack under oath.
However, Mr Aguirre persisted and his refusal to leave Mr Mack out of the inquiry led to his dismissal.
SEC chiefs now believe that Mr Aguirre has in his possession sensitive documents pertaining to the Pequot case and his attempts to subpoena Mr Mack. The agency has asked him to return the documents, but has yet to receive a formal response.
An SEC source close to the Pequot case told The Times: “We have asked Aguirre to return anything that he has in his possession that would be considered property of the SEC, that would include documents, tapes, depositions, anything to do with the case. His answer so far has been ‘we’ll get back to you on that’.”
The SEC does not know which, if any, documents Mr Aguirre has taken, the source added. Its lawyers are to demand that anything taken from the SEC should be returned and not made public.
Mr Aguirre could not be contacted for comment. Pequot denies any wrongdoing. Mr Mack says that he has never been contacted by the SEC or any of its lawyers in the matter.
business.timesonline.co.uk/article/0,,13129-2246557,00.html