WASHINGTON (MarketWatch) -- A congressional investigation into claims the Securities and Exchange Commission gave favorable treatment to Wall Street investment banking executive John Mack in an insider-trading probe of Pequot Capital Management has taken a new turn.
SEC lawyers have been told to search their email for messages about a former SEC enforcement attorney who was hired by Debevoise & Plimpton LLP, the law firm that conducted its own investigation of Mack before he was named as chairman and chief executive of Morgan Stanley (MS) in June 2005. At the time, SEC lawyers contemplated questioning Mack in connection with the insider-trading probe.
Paul Berger, formerly an associate director in the SEC's enforcement division, left the SEC this summer to become a partner in Debevoise's Washington, D.C., office. Debevoise partner Mary Jo White, formerly the U.S. Attorney in Manhattan, represented Morgan Stanley's board as it was conducting due diligence on Mack.
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<<my favorite lines below>>
Government lawyers typically recuse themselves from working on matters where they may have a potential conflict of interest, including employment prospects.
<<I guess this doesn't really apply to the SEC lawyers these days>>