The defunct hedge fund firm Pequot Capital Management and its former chief executive officer Arthur Samberg have agreed to pay $28m (£19m) to settle regulators' claims that they used inside information to trade Microsoft shares illegally, US regulators said yesterday.
The Securities and Exchange Commission accused Pequot and Mr Samberg of seeking information from a Microsoft employee in April 2001, amid rumours that the tech giant would miss its earnings estimates for the quarter.
Separately, the SEC brought an enforcement action against the former Microsoft employee David Zilkha for allegedly tipping Pequot and Samberg with information about Microsoft's earnings. Mr Zilkha has 20 days to respond to the SEC. The settlement follows a protracted congressional and SEC investigation into wrongdoing at Pequot. Pequot and Samberg agreed to settle the SEC charges without admitting or denying the civil allegations.Reuse content