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Jul 25, 2013

Criminal case against SAC is strong: lawyers

NEW YORK (Reuters) – The decision by federal prosecutors to bring criminal charges against hedge fund SAC Capital Advisors LP, rather than its billionaire owner, Steven A. Cohen, makes it more likely that the government will be able to secure a guilty verdict, lawyers say.

Attorneys who are following the case said they believe prosecutors have met the standard for convicting a corporation under federal law.

Jul 25, 2013

U.S. charges SAC Capital with insider trading crimes

NEW YORK (Reuters) – Federal prosecutors came down hard on billionaire hedge fund manager Steven A. Cohen on Thursday, unveiling criminal fraud charges against his SAC Capital Advisors LP that could put an end to his investment career.

An indictment and a civil case seeking an asset freeze and criminal money laundering penalties, cap a seven year-long investigation of one of Wall Street’s most renowned firms amid a crackdown on insider trading that led to scores of convictions.

Jul 25, 2013

SAC indictment describes ‘insider trading group’ at Citadel: sources

NEW YORK (Reuters) – A former employee of SAC Capital Advisors’ Chicago office, Richard Lee, was once part of an “insider trading group” at a rival hedge fund, according to court filings, and a source familiar with the matter said the hedge fund Lee had worked for was Citadel Investment Group.

Charges filed in U.S. District Court in New York on Thursday against Steven A. Cohen’s SAC Capital describe the move Lee made from a hedge fund, identified only as “Hedge Fund A” to SAC, despite a warning that Lee “was known for being part of Hedge Fund A’s ‘insider trading group.’”

Jul 24, 2013

DOJ expects to charge SAC Capital on Thursday – source

NEW YORK (Reuters) – Federal prosecutors are continuing to look for ways to build a criminal case against billionaire trader Steven A. Cohen at the same time as they prepare to announce criminal charges against his hedge fund, said people familiar with the investigation.

Charges of securities fraud and wire fraud expected to be filed against the company on Thursday, according to a source familiar with the investigation.

Jul 24, 2013

DOJ’s decision on criminal charges against SAC Capital nears

NEW YORK (Reuters) – Federal prosecutors who have investigated hedge fund titan Steven A. Cohen for years on allegations of insider trading have decided they do not have enough evidence to get him, so they are going after his company instead.

The Manhattan U.S. Attorney’s office is nearing a decision about filing criminal charges against Cohen’s $15 billion SAC Capital Advisors hedge fund, said a person familiar with the matter.

Jul 23, 2013

SAC’s Cohen was too busy to spot insider info in email: lawyers

NEW YORK (Reuters) – Steven A. Cohen’s legal team claims the hedge fund titan was simply too busy to notice some of his employees may have been using inside information to make trades in shares of computer company Dell Inc in the summer of 2008.

For starters, the lawyers argue Cohen was not even at his desk at his SAC Capital Advisors hedge fund when the allegedly improper trading took place on the afternoon of August 26, 2008. Rather, the billionaire trader was working from his vacation home in East Hampton, New York, and likely ignoring many of his emails, including the one U.S. securities regulators say should have tipped off Cohen that some of his top portfolio managers may have had access to nonpublic information about Dell’s earnings.

Jul 19, 2013

SEC says Steve Cohen failed to supervise two of his traders

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission on Friday in a surprising action took a step toward forcing hedge fund mogul Steven A. Cohen out of the industry that he helped build.

The SEC charged Cohen, 57, with failing to supervise former SAC Capital Advisors portfolio manager Mathew Martom and SAC executive Michael Steinberg, both of whom face criminal and civil insider trading charges.

Jul 19, 2013

U.S. SEC seeking to ban SAC’s Cohen from financial industry

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission on Friday in a surprising action took a step toward forcing hedge fund mogul Steven A. Cohen out of the industry that he helped build.

The SEC charged Cohen, 57, with failing to supervise former SAC Capital Advisors portfolio manager Mathew Martom and SAC executive Michael Steinberg, both of whom face criminal and civil insider trading charges.

Jul 19, 2013

SEC rejects settlement with fund manager Phil Falcone

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission voted to reject a deal its enforcement division had struck with once high-flying hedge fund manager Philip Falcone and his hedge fund Harbinger Capital Partners, according to a regulatory filing on Friday by Falcone’s publicly traded company Harbinger Group Inc.

The SEC has not released any public explanation of the decision, which the commission made in a closed-door meeting on Thursday. SEC spokesman Kevin Callahan did not respond to a request for comment.

Jul 17, 2013

Exclusive – U.S. seeks new tactic in financial crisis prosecutions

NEW YORK (Reuters) – U.S. federal prosecutors are considering a new strategy for criminally charging Wall Street bankers who packaged and sold bad mortgage loans at the height of the housing bubble, according to a federal official familiar with the investigation.

The official said federal authorities are finding new evidence they say indicates intent to commit fraud over the packaging and sale of mortgage bonds backed by subprime home loans in some of the civil lawsuits plaintiffs’ lawyers have filed against large banks.

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      "Based in New York covering financial crimes, including insider trading, investment scams, accounting fraud and financial firm misconduct."
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