Pequot Capital Management Inc, once a prominent hedge fund firm, has been named dozens of times in private reports that alerted U.S. financial regulators to possible insider trading or other misconduct, according to Bloomberg News.
Citing agency records from exchange watchdogs, the news agency reported that 36 reports had flagged possible insider trading involving shares of Google Inc
Four reports indicated possible manipulation and four were labeled other, Bloomberg reported.
The numbers would indicate they had trading that closely preceded 36 material events, Bradley Bennett, a partner at Baker Botts in Washington, told Bloomberg.
Referrals are very strong at identifying accounts that are worth additional scrutiny, Bloomberg cited Bennett, a former SEC investigator who focused on insider-trading cases, as saying. Not all referrals result in enforcement actions.
In May, Pequot founder Arthur Samberg, one of the industry's best-known managers, surprised investors and employees by saying he would shut down the firm because of a reopened government probe into possible insider trading.
The firm, which once invested $15 billion and most recently managed roughly $3 billion, became the target of a U.S. Securities and Exchange Commission and U.S. Attorney's office investigation several years ago when investigators reviewed trades made by Samberg in Microsoft Corp
Samberg and Pequot have not been accused of any wrongdoing by the SEC.
(Reporting by Svea Herbst-Bayliss; Editing by Richard Chang)