Politics & Regulation

SEC prepares to charge Pequot in Microsoft case

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The Securities and Exchange Commission has taken steps to potentially charge Pequot Capital Management and founder Art Samberg with insider trading over an investment in Microsoft made in 2001, reopening a case that the Commission closed in 2006

The Securities and Exchange Commission has taken steps to potentially charge Pequot Capital Management and founder Art Samberg with insider trading over an investment in Microsoft made in 2001, reopening a case that the Commission closed in 2006.

According to an August 10 letter sent to clients, Pequot and Samberg have received Wells Notices from the SEC Division of Enforcement. “The Commission staff intends to recommend that the Commission bring civil injunctive actions against them, alleging that they violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder,” the letter states.

Rule 10b5 covers