John Kinnucan just received an SEC subpoena regarding a firm he claims he he’s never heard of before today: SEDNA Capital Management.He told us he looked it up and found it’s a hedge fund run by Galleon chief, Raj Rajarartnam’s brother.
“I’ve never even heard of them,” Kinnucan said. “I’ve never even done business with Galleon.”
This is the first SEC subpoena that we are aware of, that has been served in the most recent phase of the FBI probe.
Obviously there are different implications associated with a subpoena from either the FBI or the SEC, and while the FBI can charge an individual with a crime, the SEC as a regulatory agency can’t do the same.
What the SEC can do, is impose bans, sanctions and fines.
Kinnucan told us that the SEC subpoeana is similar to the one the FBI sends, except it requires “even more details; more personal information.”
He could not divulge the exact requests made by the regulatory agency, but did say they’re looking for “anything related to his business for the last three years.”
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