The U.S. Securities and Exchange Commission has told former hedge fund manager Arthur Samberg that it planned to bring an enforcement action against his firm, Pequot Capital Management, according to a source familiar with the matter.

Samberg received the so-called Wells notice from the SEC in the last six weeks, said the source, who is familiar with Samberg's fund but is not authorized to speak about it publicly.

A spokesman for the firm declined to comment.

Samberg shocked investors and employees in late May when he told them that he would be shutting down Pequot Capital Management after the U.S. government reopened a probe of possible insider trading at the firm.

The source said Samberg had not received the Wells notice when he announced his plans to close the firm on May 27.

(Reporting by Svea Herbst-Bayliss; Editing by Lisa Von Ahn)

Investment