The SEC has closed out its controversial probe of possible insider trading at hedge fund Pequot Capital, but two senators aren't willing to give up just yet, reports Portfolio. Charles Grassley, on the Senate Finance Committee, and Arlen Specter, on the Judiciary Committee, have asked Arthur Samberg, chairman of Pequot, to deliver records relating to $2.1 million payment the fund made to an ex-employee.

That employee, David Zilkha, "was a key figure and potential adverse witness" in probes of Pequot by the SEC and Congress. The firm said the payments relate to a civil claim related to his termination. Grassley and Specter are concerned that the payments may have been made in exchange for Zilkha not giving investigators adverse information about Pequot.

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