The SEC, the Inspector General, and A Professional Response

Reports have surfaced that the SEC and Justice Department have opened investigations into allegations of improper disclosure of nonpublic information by government officials concerning the insider trading investigation into the Galleon Group and its founder, Raj Rajaratnam.  The investigations were apparently commenced in response to a request from counsel for Mr. Rajaratnam. 

With respect to the SEC, Mr. Kotz, the Inspector General, has apparently agreed to look into the matter.  In a highly professional manner, however, this information was not revealed in a public statement or in some inflammatory manner.  Mr. Kotz apparently delivered the information to counsel individually.  Moreover, when asked for comments, he declined to provide any.

This is a far cry from a similar situation last month.  Mr. Kotz revealed on Fox News that he was undertaking an investigation into the timing of the case brought by the Commission against Goldman Sachs.  Some in Congress had accused the Agency of deliberately timing the case to influence the financial reform process.

Mr. Kotz correctly handled this one.  The professionalism is appreciated.

Comments

[Melanie Roach]

Super great writing! Honestly.