Arthur Samberg, the chief of Pequot Capital, paid $10 million to the SEC yesterday to settle claims that the firm traded illegally on confidential information about Microsoft from employee Daniel Zilkha, and agreed to return $18 million in profits. It was, according to Bloomberg, one of largest-ever insider-trading fines ever imposed, and on top of that, Samberg was forced to close his hedge fund and barred from the industry. But the deal worked out for one person, at least.
The Securities and Exchange Commission said yesterday it obtained “direct evidence” of market-moving information passed to Arthur Samberg of Pequot Capital Management Inc. by David Zilkha from a hard drive in possession of Karen Kaiser, Zilkha’s former spouse.
That means Kaiser may be eligible for a whistleblower reward of up to 10 percent of the $10 million fine Samberg and Pequot agreed to pay in settling the case.