Insider trading investigation

Janet Babin Jun 23, 2006


TESS VIGELAND: A report out today says the Securities and Exchange Commission is investigating a major US hedge fund for possible insider trading. The investigation is so sensitive that even the SEC’s handling of the matter is under review. Marketplace’s Janet Babin has that story.

JANET BABIN: The New York Times reports that Piquot Captial Management’s investments raised eyebrows with stock exchange officials 18 times.

The Times cites unnamed government officials and a lawyer who used to work at the SEC.

That attorney said Piquot invested in a company that soon after merged with General Electric Captial Corporation. The stock rose 50 percent and Piquot made $18 million.

But the lawyer investigating Pequot was fired last September.

Congress and the Office of Special Council are investigating the SEC’s handling of the inquiry.

In a statement, Pequot called the New York Times article outrageous, because it was based on the allegations of a terminated SEC worker.

I’m Janet Babin for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.