S.E.C. Inquiry on Hedge Fund Draws Scrutiny

Questions into inside trading probe of Wall Street executive who is big Bush fundraiser--BUZZFLASH

By WALT BOGDANICH and GRETCHEN MORGENSON

Published: October 22, 2006

By the evening of June 20, 2005, the government’s investigation of possible insider trading by Pequot Capital Management, a prominent hedge fund, had reached a critical stage.

Throughout the day, Robert Hanson, a branch chief in the Washington office of the Securities and Exchange Commission, had been questioning his lead investigator in the case about taking the testimony of John J. Mack, an influential Wall Street executive.