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Nov 4, 2013

Hedge fund titan Cohen to come under outside monitor’s purview

NEW YORK, Nov 4 (Reuters) – Steven A. Cohen is going to have
a government minder as he winds down his SAC Capital Advisors
hedge fund after it agreed on Monday to plead guilty in a nearly
decade-long insider trading investigation.

The provision for a compliance consultant, highlighted by
prosecutors on Monday in announcing a proposed $1.2 billion
settlement and guilty plea, marked the latest instance of what
has become a growing trend of the U.S. Department of Justice
requiring companies to retain outside monitors as part of
settlements.

Nov 4, 2013

U.S. to put SAC hedge fund out of business over insider trading

NEW YORK (Reuters) – Billionaire investor Steven A. Cohen’s days as a hedge fund manager may be over with his SAC Capital Advisors agreeing to plead guilty to insider trading charges and pay a record $1.8 billion in fines and forfeitures.

But Cohen, one of Wall Street’s best known traders, will likely continue to be a major player for years to come. He has not been personally charged with any crime and has some $9 billion of his own money that he is expected to manage through a family office once his hedge fund’s plea deal is cleared by the courts.

Nov 4, 2013

SAC to plead guilty in insider trading case: prosecutors

NEW YORK (Reuters) – Steven A. Cohen’s embattled hedge fund SAC Capital Advisors will plead guilty in federal court and pay $1.8 billion to settle charges stemming from an insider trading investigation that lasted more than five years, prosecutors said on Monday.

The two sides reached a settlement agreement which, if approved by a judge, would also resolve a civil forfeiture action against SAC and its affiliates, prosecutors said.

Oct 14, 2013
via Unstructured Finance

FBI not waiting for Silk Road owner’s Bitcoin password

From the frenzied coverage of the U.S. Federal Bureau of Investigation’s takedown of the online drug marketplace Silk Road early this month one story has emerged as particularly popular among Bitcoin insiders: A report from Forbes on Oct 4 said the FBI had tried and failed to seize alleged Silk Road owner Ross Ulbricht’s personal stash of the digital currency, supposedly worth $80 million.

The FBI is now saying that’s just not true.

According to the Forbes report, the feds managed to seize all the Bitcoin Silk Road had in its accounts, but when it came to going after Ulbricht’s “personal” Bitcoin account, the job wasn’t that easy. Ulbricht had a higher level of protection on his own account than he did on Silk Road’s digital “wallets,” as they are called, and the feds are stuck waiting for Ulbricht to cough up his password before they can take his Bitcoin.

Oct 10, 2013

Brothers to pay $5 mln to settle Heinz insider-trading charges

WASHINGTON, Oct 10 (Reuters) – Two brothers from Brazil will
pay $5 million to settle civil charges that they reaped $1.8
million in illegal profits by trading ahead of an announcement
that Berkshire Hathaway Inc and 3G Capital planned to
acquire ketchup-maker H.J. Heinz, the U.S. Securities and
Exchange Commission said on Thursday.

Earlier this year, the SEC froze their assets in a
Swiss-based account after detecting suspicious options trading
before the $28 billion deal was announced. At the time, their
identities were unknown.

Oct 4, 2013

Email, undisclosed in SAC trader’s case, could help defense: sources

NEW YORK (Reuters) – In the coming trial of a SAC Capital Advisors hedge fund portfolio manager, Michael Steinberg, prosecutors are likely to present emails purporting to show he was being tipped about inside information on Dell Inc before trading on the stock.

But two people familiar with the matter said there are some emails that prosecutors have not included in court filings that could be helpful to Steinberg’s defense that he did not engage in insider trading in August 2008 at SAC, founded by Steven A. Cohen, one of Wall Street’s most successful hedge fund managers.

Oct 2, 2013

FBI shuts alleged online drug marketplace Silk Road

NEW YORK (Reuters) – U.S. law enforcement authorities have shut down Silk Road, the web marketplace for illegal drugs like heroin and cocaine as well as criminal activities including murder for hire, and arrested its alleged owner, the Federal Bureau of Investigation said on Wednesday.

The FBI arrested Silk Road owner Ross William Ulbricht, 29, known as “Dread Pirate Roberts,” in San Francisco on Tuesday, according to court filings.

Sep 30, 2013

Exclusive: JPMorgan settlement complicated by Washington Mutual – sources

NEW YORK (Reuters) – JPMorgan Chase & Co’s possible $11 billion settlement of government mortgage probes has been complicated by a dispute with the Federal Deposit Insurance Corp over responsibility for losses at the former Washington Mutual Inc, said people familiar with the matter.

The dispute, between the largest U.S. bank and the FDIC, could leave the federal agency on the hook for billions the bank is expected to pay as part of the settlement and substantially reduce the amount of the penalty JPMorgan actually pays to the government, some analysts said.

Sep 30, 2013

JPMorgan settlement complicated by Washington Mutual -sources

NEW YORK, Sept 30 (Reuters) – JPMorgan Chase & Co’s possible
$11 billion settlement of government mortgage probes has been
complicated by a dispute with the Federal Deposit Insurance Corp
over responsibility for losses at the former Washington Mutual
Inc, said people familiar with the matter.

The dispute, between the largest U.S. bank and the FDIC,
could leave the federal agency on the hook for billions the bank
is expected to pay as part of the settlement and substantially
reduce the amount of the penalty JPMorgan actually pays
to the government, some analysts said.

Sep 25, 2013

Cohen’s SAC Capital up 13 pct for year – source

NEW YORK, Sept 25 (Reuters) – Steven A. Cohen’s SAC Capital
Advisors hedge fund has posted strong returns so far this year
even as it deals with a criminal indictment charging the $14
billion fund with being a breeding ground for insider trading.

A source familiar with the firm said Cohen’s fund was up
about 13 percent this year as of last Friday and has had a
particularly good September.

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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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