Patricia Hurtado, 25 July 2013
SAC was indicted on 4 counts of securities fraud, 1 count of wire fraud in an indictment unsealed in Manhattan federal court. Manhattan: SAC Capital Advisors LP, the $14 billion hedge fund founded by Steven A. Cohen, was indicted by a US grand jury as part of the government’s six-year crackdown on insider trading on Wall Street.
The charges against the Stamford, Connecticut-based hedge fund are the most significant to be brought by the US since former Goldman Sachs Group Inc. director Rajat Gupta was accused of insider trading in October 2011. Gupta, convicted in New York federal court last year, was sentenced to two years in prison.
This isn’t the first time Manhattan US attorney Preet Bharara has sought charges against a business. In February 2012, his office charged Wegelin & Co., Switzerland’s oldest private bank, for helping US taxpayers hide assets from the Internal Revenue Service. Wegelin pleaded guilty and was ordered to pay almost $58 million.