In Wake of Aguirre Case; S.E.C. Inspector General Promises Changes

Stemming from the case of GAP client Gary Aguirre, the new Inspector General at the Securities and Exchange Commission (S.E.C.) has promised that future internal investigations of agency fraud or abuse will be handled credibly.

Aguirre was an S.E.C. staff attorney who was fired three years ago after protesting that his S.E.C. superiors were hindering his effort to subpoena John Mack, now the CEO of Morgan Stanley, in an insider trading investigation of hedge fund Pequot Capital Management.

S.E.C. Inspector General David Kotz pledged to restore the integrity of his office in a letter to Sen. Charles Grassley. An August report from the Senate Finance Committee, summarizing the findings of a year-long investigation into Aguirre’s case, details a laundry list of wrongdoing on the part of S.E.C. officials, stating not only that Aguirre was wrongfully retaliated against, but that the S.E.C. basically botched the investigation.   

-- Dylan Blaylock

Comments

[Mark]

Thanks for doing what you do. I read the blog often. Just wanted to let y'all know you're appreciated. Am working on my JD now, and would like to become involved with GAP sometime in the future.

Keep it up.

Mark