SEC Whistleblower, Gary Aguirre on the Fake Crackdown on Wall Street Crime

In 2005, Gary Aguirre was senior council at the Securities Exchange Commission. He investigated a case involving insider trading at a major hedge fund, Pequot Capital Management. After a little digging, it became apparent that the soon-to-be CEO of Morgan Stanley, John Mack, was involved. Mack also happened to be a major campaign contributor to George W. Bush. Mr. Aguirre's supervisor warned him that Mack was untouchable due to his political connections. So Pequot's attorneys met with the SEC Director of Enforcement. The result? The case would be -- first "narrowed" -- then Mack's testimony was delayed. The statute of limitations for Mack eventually ran out, and Mr. Aguirre complained about Mack's "political clout." Big mistake. Because he was promptly fired. Bob speaks with Gary Aguirre about his experience at the SEC.

Bob asks why records of preliminary investigations were simply destroyed at the SEC, as a matter of practice. Was it to protect the big names on Wall Street? Bob talks with Mr. Aguirre about one of his current whistleblowing clients, Darcy Flynn. Mr. Flynn was helping to manage the SEC's records and found that the practice of destroying investigatory files at the SEC had been going on since 1993. He alerted the authorities at the National Archives, and then the whitewash began.