Conn. divorce judge puts $250K into escrow
Associated Press
06/20/09 5:50 PM EDT
STAMFORD, CONN. — A Connecticut divorce judge has placed in escrow $250,000 that a hedge fund paid a former Microsoft employee amid a federal investigation of possible insider trading.
The money is contested in David Zilkha's divorce from his ex-wife, Karen Kaiser. Financial records show Pequote paid Zilkha $700,000 in 2007 and 2008, and was to pay him another $700,000 this year. Kaiser says she's entitled to some of the money.
The Securities and Exchange Commission earlier this year reopened its probe of possible insider trading at Westport-based Pequot. Its investigating if Pequot traded Microsoft Corp. shares on confidential information provided by Zilkha, who it had hired.
The SEC closed its probe in 2007, but reopened it after Pequot's payments to Zilkha were detailed in his divorce case.
