SEC reopens insider trading case against Pequot

The Securities and Exchange Commission on Thursday filed an insider trading case against Pequot Capital Management — the very same firm deemed innocent of insider trading under former SEC Chairman Chris Cox. 

The case drew congressional attention at that time after the SEC's chief examiner, lawyer Gary Aguirre, accused his superiors of blocking the investigation. 

In testimony before a Senate committee witnesses testifying for commission said Aguirre was off-balanced and prone to angry outbursts.

That reaction got the attention of Sens. Chuck Grassley (R-Iowa) and Arlen Specter (D-Pa.), who held hearings on the matter which uncovered evidence supporting Aguirre's claim. 

Grassley said Thursday's actions by the SEC is a vindication for the SEC lawyer.

"There was clearly a case to be made against Pequot, and the SEC has finally admitted it," Grassley said in prepared remarks. "Today's announcement bears out what the SEC lawyer Gary Aguirre argued years ago. He lost his job because he spoke out against his supervisors putting up roadblocks to an aggressive investigation of Pequot." 

"Mr. Aguirre had the courage to stand up and fight for what was right, and the next thing the SEC ought to do is hold someone accountable for how he was treated," Grassley said.