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Messy Divorce Leads to Whistleblower Bounty
A computer hard drive transformed Karen Zilkha v. David Zilkha from a messy divorce case into an insider trading investigation that led to the downfall of a major hedge fund.
Southbury, CT, resident Karen Kaiser (her remarried name) made headlines in July when the federal government gave her a $1 million whistleblower bounty for finding evidence allegedly implicating her ex-husband and his former employer, Westport, CT-based Pequot Capital Management Inc. But less has been written about the emotionally charged child custody battle that led to the discovery of computer files, the continuing investigation by the Securities and Exchange Commission (SEC) and the two attorneys who aided Kaiser.
Jill H. Blomberg, a family law attorney at Schoonmaker, George & Colin in Greenwich, CT, represented Kaiser from the beginning of the divorce proceedings in 2003 through the time the SEC evidence was found in 2008. Stamford, CT, attorney Mark Sherman has also represented Kaiser, helping her obtain a protective order against her ex-husband, who was charged with assault, and guiding her participation in the SEC probe.
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