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Not Naming the Names: Reaz Islam’s Lawyer Responds to a Fair Game Column
To the Editor:
The central question raised by Gretchen Morgenson in “Neglecting to Name the Names” (Fair Game, Aug. 30) was why the Securities and Exchange Commission brought no charges against Reaz Islam, who, the column claims, was the unnamed “fund manager” referred to in an S.E.C. settlement document with Citigroup.
Yet the actual answer to that question was ignored in the column: Despite an extensive investigation, the S.E.C. was unable to allege in good faith, much less prove, that Mr. Islam violated a single law, rule or even an investment guideline. To the contrary, Mr. Islam always acted in full accordance with the law and with the explicit written disclosures made to his investors, and with a genuine belief in the soundness of the funds that he helped manage. The losses sustained by the funds’ investors — losses in which Mr. Islam himself personally shared — were caused not by wrongdoing, but by the unprecedented market dislocations that shook the world in 2007 and 2008.
These facts are why the S.E.C. was left to resolve this matter by making unproved allegations that did not even explicitly refer to Mr. Islam, while accepting a large cash payment from Citigroup.
Sean R. O’Brien
New York, Sept. 22
The writer is a lawyer representing Reaz Islam.
Letters for Sunday Business may be sent to sunbiz@nytimes.com
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