Wednesday, November 28, 2012

SAC Capital notified that SEC may bring insider trading charges against them



Totally unsurprisingly.....Steve Cohen's SAC Capital Advisors has received a Wells notice from the Securities and Exchange Commission, suggesting the regulator may bring civil charges of insider trading against the hedge fund firm, a person familiar with the matter told Reuters.


The $14 billion hedge fund firm held a phone call with investors on Wednesday morning to inform them of the notice, the source said. (A Wells notice indicates that SEC staff would recommend a civil enforcement action against the firm.)   Cohen, who founded the firm, has not been accused of wrongdoing. He was on the telephone call on Wednesday morning, the source said.

This is the first time the government has indicated it may move against the hedge fund firm itself on insider trading, after previously accusing only former SAC employees....

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