UPDATE 1-Pequot employee told psychologist he supplied tips

2009年 11月 20日 星期五 08:53 BJT
 

* Divorce offers insight to Pequot insider trading case

* Therapist: Zilkha fired for not supplying information

* Spokesman for Pequot manager Samberg declines comment

* SEC and Justice Department also decline to comment (Recasts with details from divorce proceedings, senators' letter)

By Rachelle Younglai and Matthew Goldstein

WASHINGTON/NEW YORK, Nov 19 (Reuters) - A former Pequot employee told a psychologist he was fired from the hedge fund when he was unable to provide further inside information about Microsoft Corp (MSFT.O: 行情), his previous employer, according to a a deposition revealed on Thursday.

David Zilkha, according to the psychologist, said Pequot manager Arthur Samberg expected him to provide insider information about Microsoft.

"(Zilkha) said that Mr. Samberg wanted him to get inside information on Microsoft and that when Mr. Zilkha stopped providing it he was fired," psychologist Peggy Thomson said in an Oct. 15 deposition in Zilkha's divorce proceeding.

Samberg has told investors that the U.S. Securities and Exchange Commission has alerted him that it is considering filing civil insider trading charges against him and Pequot.

He had told investors in May he was shutting down his firm because the SEC had reopened its probe into trades Pequot conducted in Microsoft over eight years ago.

A spokesman for Samberg declined to comment on Thursday.

Pequot, which invested $15 billion at its peak and ranked as one of the $1.4 trillion hedge fund industry's most successful firms, has previously told clients it believes the charges are without merit and it plans to "defend the matter vigorously."

According to another deposition in the divorce case, Zilkha asserted his Fifth Amendment right against self incrimination last month when asked whether he had been contacted by either the SEC or the FBI in conjunction with an investigation of Pequot and the alleged insider trading in shares of Microsoft.

He also declined to say whether he had received a Wells notice from the SEC -- an official notification that he could be facing a possible enforcement action.

Calls to Zilkha's lawyer were not immediately returned. Attempts to reach Zilkha and Thomson were not successful.

U.S. senators Arlen Specter and Charles Grassley sent a letter to the SEC on Wednesday offering the information from the October depositions, saying it had already been forwarded to U.S. prosecutors.

The SEC and Justice Department declined to comment.

The senators have taken great interest in the Pequot investigation since former SEC employee Gary Aguirre said he was fired after his insider trading probe of the hedge fund got too close to a powerful Wall Street banker.

Aguirre said he wanted to subpoena John Mack, the chief executive of Morgan Stanley (MS.N: 行情), as part of the probe, but was stopped by agency supervisors because of Mack's political clout. (Reporting by Rachelle Younglai and Matthew Goldstein; Editing by Tim Dobbyn)

 
 

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