Insider trading investigation

TEXT OF STORY

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.