Wilmington Morning Star – Senior officials at the Securities and Exchange Commission vigorously defended the commission’s investigation of a prominent hedge fund, Pequot Capital Management, tellingthe Senate Judiciary Committee on Tuesday that its inquiry was professional, thorough and untainted by outside political influence.
In their first detailed public comments about the investigation of Pequot, four current or former S.E.C. supervisors took aim at their former colleague and chief accuser, Gary J. Aguirre, saying hisallegations that the agency had pulled its punches were unfounded and came from a fired employee whose temperament and judgment had caused problems in the office.
“He treated his colleagues with disrespect bordering on contempt,†said Mark Kreitman, an assistant director of enforcement at the S.E.C. “His investigation of Pequot was poorly thought out,disorganized, and sloppily documented.â€Â
The testimony by S.E.C. officials, including the agency’s inspector general, was met with considerable skepticism by Senator Arlen Specter, who is chairman of the Judiciary Committee, and SenatorCharles E. Grassley, the Iowa Republican who heads the Finance Committee. Both panels are investigating the Securities and Exchange Commission’s handling of the Pequot inquiry.
