Hedge Funds

GAO to investigate SEC over Pequot probe


The U.S. Securities and Exchange Commission's insider trading investigation of Pequot Capital Management was back in the spotlight this week after the Government Accountability Office said Wednesday that it would audit the SEC in connection with the Pequot matter. That investigation was requested by Senator Charles Grassley, chairman of the Senate Finance Committee.

The GAO probe comes on the heels of a lengthy October 22 New York Times article detailing allegations that the SEC dragged its feet on an investigation of improper trading activity at Pequot and later fired an investigator who spearheaded the case.

On October 5,