New York (HedgeCo.Net) – SEC officials did not botch an investigation into alleged insider trading by hedge fund Pequot Capital Management, at least according to the SEC.

Brenda P. Murray, an administrative law judge for the Securities and Exchange Commission, concluded that no disciplinary action should be taken against two of the officials originally accused.

The 15-page report compiled by Murray goes against the original findings of both the SEC’s Inspector General H. David Kotz and Senate investigators who were put on the case. 

Last month, Kotz compiled his own report and recommended the agency take disciplinary action against Director of Enforcement Linda Thomsen, Assistant Director of Enforcement Mark Kreitman and Robert Hanson, Supervisor of SEC lawyer Gary Aguirre. 

Kotz said he found evidence that “raised serious questions about the impartiality and fairness” of the SEC investigation.  He went on to say how the SEC treated the hedge fund differently than other investigations and perhaps gave them special treatment. 

Murray’s findings were in stark opposition with Kotz’s, clearing both Thomsen and Hanson from any wrongdoing. 

“We were surprised and disappointed by the administrative judge’s decisions,” said Kotz.  “We also have serious concerns about the process utilized in arriving at these decisions.”

Other concerns that have come to the table draw on the fact that Murray was acting outside of her jurisdiction, along with the fact that there might be a conflict of interest considering she is in fact employed by the SEC.   

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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Tags: banking-industry, chief-executive, governmental-affairs-subcommittee, investment-banks, money-managers, new-marketplace, silver-creek, sir-andrew

New York (HedgeCo.Net) – Shareholders in Falkland Gold & Minerals have approved plans to buy Bahamas-based oil exploration company BPC after a unanimous vote yesterday. 

Philip Richards, head of the RAB Special Situations Fund that owns a 76 percent stake in Falkland, will pocket around £1m thanks to the reverse takeover and his vast personal stake in BPC of 300,000 shares.    

While there has been some question regarding a possible conflict of interest with a hedge fund manager having that kind of stake in a company, Richards has been completely transparent in his holdings long before the meeting in which shareholders overwhelmingly approved the takeover. 

"This was a deal recommended by two strong independent and separate boards, both of which concluded that it was in the best interest of all their respective shareholders," said a spokesperson for RAB. 

Shareholders will get six shares of Falkland for every one share of BPC. 

RAB made headlines when the fund experienced sharp declines amidst the nationalization of Northern Rock, in which they amassed a significant stake.  Meanwhile, Falkland has posted losses of over 90 percent over the past four years, prompting investors in the Special Situations Fund to lose an estimated £11m.    

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. For more information, visit www.hedgeconetworks.com

Tags: aftermath, british-musicians, brokerages, downfall, due-diligence-service, footsteps, glg-fund, glg-partners, government-loans, img-src, initial-public-offering, sir-andrew, stakeholder

NorthJersey.com – Governor Corzine’s conscience was clear last week after signing a law to bring a $200 million aquarium to the Coney Island by the Meadowlands – better known as the Xanadu project.

In a footnote, buried at the bottom of a press release, Corzine said he had been assured by an ethics panel that the move posed no conflict of interest, even though the big tank could boost the bottom line of Xanadu investor, Daniel Neidich, one of Corzine’s "closest friends" and a former Goldman Sachs crony.

But Corzine’s public disclosure – New Jersey’s low hurdle of ethical absolution – may have backfired. Instead, of winning points for being a Boy Scout, Corzine may have plopped the troubled Xanadu project back into the public fishbowl for another punishing round of public scrutiny.

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Tags: raanan-agus, sir-andrew, stalemate, volatility