SEC's Inspector General Criticizes Investigation into Allied Capital

More poor marks for the SEC from its Inspector General.  A report (available at the Washington Post's website) finds that the agency did not seriously pursue allegations against Allied Capital, a D.C.-based private equity firm, but did go after the hedge fund manager who challenged the value of Allied's investments after heavy lobbying at the SEC by Allied.  According to the Inspector General, the incident once again raises serious concerns about how decisions are made at the agency about bringing and conducting investigations.  WPost, SEC inspector general raises red flags in new report