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Jul 30, 2013

Accused tipper to SAC hedge fund arrested in insider-trading probe

By Emily Flitter and Dan Levine

(Reuters) – A securities analyst accused of leaking secret information in 2009 about a potential partnership between Yahoo and Microsoft to an SAC Capital Advisors hedge fund manager and other traders was arrested and charged in California, prosecutors said on Tuesday.

Sandeep Aggarwal, who worked as an analyst covering technology stocks before moving to India to start his own internet company, was arrested on Monday by FBI agents in San Jose while visiting the United States. He made his initial appearance in San Francisco federal court on Tuesday, charged with conspiracy to commit securities fraud and wire fraud related to insider trading.

Jul 29, 2013

‘Real Housewives’ New Jersey couple facing fraud charges

NEW YORK (Reuters) – She was called a “dumb ass” on national television on Sunday, but things got worse for reality TV “Real Housewife” Teresa Guidice on Monday when she and her husband, Giuseppe, were charged with fraud and tax evasion.

The two cast members of “The Real Housewives of New Jersey” were indicted in U.S. District Court in New Jersey on a total of 39 charges, including bankruptcy fraud, making false statements on loan applications, bank fraud and conspiracy to commit mail and wire fraud, according to court filings.

Jul 26, 2013

SAC Capital pleads not guilty, but remains silent to investors

NEW YORK (Reuters) – Billionaire investor Steven A. Cohen’s hedge fund pleaded not guilty on Friday to insider trading charges in federal court, as investors in the roughly $15 billion fund awaited word on plans for the fund’s future.

Several SAC Capital Advisors LLP clients said they had yet to be contacted officially by the firm in an investor-wide call or note. Investors have until August 16 to decide if they will submit a redemption request to the fund. At least one client called, but could get no information.

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.

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