Here is my version of what is going down based on what I've read today. I'm not sure how much of it is 100% legit.
- Pequot makes about $2 million trading MSFT around earnings in 2001
- Around the same time Pequot hires David Zikha from MSFT
- Pequot fires Zikha
- The SEC unsuccessfully probes Pequot over the trades
- Zikha sues Pequot
- Pequot pays Zikha $2.1 million
- SEC closes case
- Zikha's wife files for divorce
- Zikha's wife produces a copy of the hard drive from the home computer which included sketchy emails between Zikha and his old boss at MSFT
Bam. They should put her on the Madoff case.