SAC Capital – Page 4 – Financial Treason & Crime

Charles Gasparino, 22 July 2013

After years of investigations, wiretaps, and coercing cooperation from numerous witnesses, the government’s big insider trading case against hedge fund impresario and long-time target Steve Cohen may come down to a single “failure to supervise” charge.

That’s right: No insider trading charges; no criminal charges; and no fraud allegations. It sounds like pretty weak stuff considering what the Feds believe to be the scope of the crime: numerous instances of insider trading at the massive hedge fund that Cohen runs, the Stamford, Connecticut-based SAC Capital — and possibly the direct involvement of Cohen himself in some of those trades. Continue reading “Article: Busting Steve Cohen: How a Minor Charge Threatens a Major Figure”

07/19/201303/03/2021

Article: Hedge fund founder Steven Cohen charged over ‘insider trading’

Article - Media, Publications

Hedge fund founder Steven Cohen charged over ‘insider trading’

BBC News, 19 July 2013

A billionaire hedge fund manager has been charged with failing to stop insider trading, the US Securities and Exchange Commission (SEC) says. SAC Capital Advisors founder Steven Cohen, 57, faces civil charges over what the US government has called one of the biggest such fraud cases ever. Mr Cohen did not properly supervise two traders who engaged in illegal insider trading, the SEC alleges. Continue reading “Article: Hedge fund founder Steven Cohen charged over ‘insider trading’”

05/20/201303/04/2021

Article: Steven Cohen to Testify Before Grand Jury over Insider Trading

Article - Media, Publications

Steven Cohen to Testify Before Grand Jury over Insider Trading

24/7 Wall St., 20 May 2013

As federal officials investigate insider trading at Steven Cohen’s SAC Capital Advisors, the noose has begun to tighten around his neck. There has long been a suspicion that he was aware of the illegal practice within his firm, if he did not employ it himself. Worries about the possible legal effects of the probe have caused many of his investors to flee. If Cohen is caught in the government’s web, the process likely escalate. Continue reading “Article: Steven Cohen to Testify Before Grand Jury over Insider Trading”

12/12/201203/03/2021

Article: The Hedge Fund Industry: an increasingly litigious environment

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The Hedge Fund Industry: an increasingly litigious environment

cms lawnow, 12 December 2006

In July 2006, Fairfax Financial Holdings Limited (the insurance and financial services holding company based in Toronto Canada) brought a legal action in the Superior Court of New Jersey against a number of prominent US based hedge funds including S.A.C. Capital Management (the $10billion hedge fund operated by Stephen Cohen), Exis Capital Management, Lone Pine Capital, Rocker Partners L.P. and Third Point LLC alleging stock market manipulation. Continue reading “Article: The Hedge Fund Industry: an increasingly litigious environment”

12/12/201203/04/2021

Article: From Bernie Madoff to Steven Cohen, Enabling Suspiciously High Returns

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From Bernie Madoff to Steven Cohen, Enabling Suspiciously High Returns

Jesse Eisinger, 12 December 2012

To have one employee tied to insider trading may be regarded as a misfortune. But, with apologies to Oscar Wilde, to have six looks like carelessness.

Poor Steven A. Cohen, the powerful hedge fund manager who heads SAC Capital Advisers. People he employs just keep getting swept up in the sprawling insider trading investigation that has spanned years now. In addition to the six who have gotten in trouble for activities when employed at SAC, at least six others have been ensnared by insider trading investigations after leaving the firm. The latest arrest, of the pharmaceutical industry analyst Mathew Martoma, is the first that ties Mr. Cohen to trades the government says were illegal. Continue reading “Article: From Bernie Madoff to Steven Cohen, Enabling Suspiciously High Returns”

11/28/201203/04/2021

Article: NY Insider trading: Bharara is after Steven Cohen, not Mathew Martoma

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NY Insider trading: Bharara is after Steven Cohen, not Mathew Martoma

SUttara Choudhury, 28 November 2012

Manhattan US Attorney Preet Bharara, who has won guilty convictions against high-profile Galleon Group billionaire Raj Rajaratnam and former Goldman Sachs director Rajat Gupta, is not resting on his laurels.

Since the crackdown on insider trading began five years ago on Wall Street, there have been more than 70 arrests. Manhattan US Attorney Preet Bharara, who has won guilty convictions against high-profile Galleon Group billionaire Raj Rajaratnam and former Goldman Sachs director Rajat Gupta, is not resting on his laurels. Continue reading “Article: NY Insider trading: Bharara is after Steven Cohen, not Mathew Martoma”

03/18/201003/04/2021

Article: Steven Cohen’s Hedge Fund Being Investigated For Insider Trading: Report

Article - Media, Publications

Steven Cohen’s Hedge Fund Being Investigated For Insider Trading: Report

Matthew Goldstein and Svea Herbst, 18 March 2010

The question on the minds of investors, managers and lawyers inside and outside the hedge fund industry today is, who’s next? Continue reading “Article: Steven Cohen’s Hedge Fund Being Investigated For Insider Trading: Report”

01/03/200905/20/2020

Web: Will the Justice Department and the SEC Go After Blatantly Illegal RICO Activity by the Nation’s Most Prominent Hedge Funds?

Web

Will the Justice Department and the SEC Go After Blatantly Illegal RICO Activity by the Nation’s Most Prominent Hedge Funds?

Bob O’Brien

Sanity Check via Wayback, 3 January 2009

Apparently hedge funds like Kynikos, and SAC, have a secret for their outsize performance.

Racketeering, and illegal frontrunning, if my read is correct.

That’s the only conclusion one can draw from the stunningly simple and obvious analysis of email records that Judd Bagley, over at the Deepcapture site, has compiled.

You have Jim Chanos, who is all over the airwaves as the advocate and public face of the hedge fund world, who argues against any and all regulation or oversight for hedge funds or short sellers, apparently actively frontrunning information illegally obtained from stock analysts, who eagerly shared their analysis and spreadsheets with him in advance of publishing negative smear pieces subsequently shown by time to have been nothing more than hatchet jobs.

Access archived article.

06/28/200605/21/2020

Article: Hedge Hogs

Article - Media

Hedge Hogs

Liz Moyer

Forbes, 28 June 2006

So who should be overseeing the $1.2 trillion hedge fund industry? Apparently no one is now. But the U.S. Senate Judiciary Committee has two ideas.

Either the nation needs new legislation to tackle allegations of widespread trading abuses by the hedge funds, or law enforcement officials should simply be encouraged to do the right thing with laws they already have at their disposal?

Read full article.