HedgeFund.net: Public news from HedgeNews
|
|
|
|
|
|
|
| Click below for information on membership options |
|
|
Ex-Pequot Trader Claimed Samberg Wanted Tips
by Paula Schaap ,Senior Reporter , November 20, 2009
A trader who once worked for Pequot Capital Management reportedly told a therapist that he was fired when he refused to provide tips on his former company Microsoft Corp.
That information came out in the divorce proceedings of David Zilkha who claimed that Pequot founder Arthur Samberg fired him when he wouldn’t give him tips on Microsoft, Zilkha’s psychologist said in a court deposition.
Senators Arlen Specter (D.-Pa.) and Charles Grassley (R.-Iowa) followed up revelations about the transcripts with a letter to Securities and Exchange Commission Chairman Mary Schapiro, calling on the SEC to complete its investigation.
“[D]uring the testimony of Dr. Peggy Thomson, a psychologist retained by Mr. Zilkha to perform a psychological evaluation, it was revealed that Mr. Zilkha admitted that he provided Arthur Samberg with insider information (i.e. tips) and was fired after he was unable to provide additional tips,” the Senators wrote.
The Senators’ letter also claimed that Zilkha asserted his Fifth Amendment right against self-incrimination more than 100 times when he was asked about his finances.
“While Mr. Zilkha has a constitutional right to invoke the privilege, the breadth of questions he would not answer suggests the need to conclude the SEC’s investigation – one way or another.”
An SEC spokesman said the agency would not comment. An attorney for Zilkha did not immediately return a phone call seeking comment.
Pequot has been the subject of a Securities and Exchange Commission investigation into the allegations about insider trading in Microsoft securities. The trades were alleged to have taken place in 2001. The investigation was discontinued, but then was started up again.
Although Samberg has denied that anything untoward happened at his firm, he decided to close down in May. At the time, Samberg wrote that the continuing SEC investigations made operating his hedge fund “increasingly untenable.”
Samberg has not been the subject of the SEC investigation.
The investigations appeared to take their toll on the firm, as Pequot, which had about $15 billion in assets under management in 2001, had been reduced to about $2 billion by the time it closed.
Another SEC investigation into Pequot concerned an allegation that Morgan Stanley Chief Executive Officer John Mack gave the hedge fund firm confidential information when he was the head of investment bank Credit Suisse Group. That investigation was closed in 2008.
A spokesman for Pequot and Samberg did not return a call from HedgeFund.net seeking comment.
|
|
 |
|
|
|
|
| |
|
|
| |
| |
|
Disclaimer: An affiliated broker-dealer of HedgeFund.net is compensated for providing
capital introduction services to hedge funds and hedge fund managers, which may
include one or more hedge funds mentioned in this article. Hedge funds and/or hedge
fund managers mentioned in this article also may compensate HedgeFund.net for services
provided to them by HedgeFund.net
|
|
|
|
|
|
|
|
NEITHER CHANNEL CAPITAL GROUP INC.("CCG"),ITS AFFILIATES,OR CCG'S OR ITS AFFILIATES RESPECTIVE OFFICERS,DIRECTORS,AGENTS,MEMBERS,SHAREHOLDERS AND EMPLOYEES (EACH A "CCG PARTY" AND COLLECTIVELY THE "CCG PARTIES")RECOMMENDS OR SOLICITS ANY INVESTMENT BY USERS OF THIS WEB SITE,THE MATERIAL CONTAINED HEREIN IS BASED UPON INFORMATION PROVIDED BY HEDGE FUND MANAGERS AND OTHER SOURCES. THE CCG PARTIES HAVE NOT INDEPENDENTLY VERIFIED SUCH INFORMATION,DO NOT REPRESENT IT AS ACCURATE ,TRUE OR COMPLETE, MAKE NO WARRENTY, EXPRESS OR IMPLIED REGARDING IT AND SHALL NOT BE LIABLE FOR ANY LOSSED,DAMAGES,COSTS, OR EXPENSES RELATING TO ITS ADEQUANCY ,ACCURACY ,TRUTH ,COMPLETENESS, OR USE, REGISTERED USERS SHOULD NOT RELY UPON DATA TO MAKE AN INVESTMENT DECISION ,AND SHOULD NOT THAT PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE.
|
|
|
|