25 Jul 2013
US files charges against SAC and says insider trading scheme
FXstreet.com (San Francisco) - US Federal prosecutors have filed criminal charges against SAC Capital Advisors as they said the hedge-fund allowed "numerous employees" to do "systematic insider trading". The US also denounces a global scheme to obtain inside information to boost returns and fees between 1999 and 2010.
According to the indictment, "unlawful conduct by individual employees and an institutional indifference to that unlawful conduct resulted in insider trading that was substantial, pervasive and on a scale without known precedent in the hedge fund industry"
The charges involve portfolio managers, analysis and publicly traded companies and it resulted in hundreds of millions of dollars of illegal profits along avoiding losses.
The government accused former portfolio manager Richard Lee of "conspiracy to commit securities fraud." Prosecutors are seeking to ban to ban SAC founder Steven Cohen from managing client money for the rest of his life.
According to the indictment, "unlawful conduct by individual employees and an institutional indifference to that unlawful conduct resulted in insider trading that was substantial, pervasive and on a scale without known precedent in the hedge fund industry"
The charges involve portfolio managers, analysis and publicly traded companies and it resulted in hundreds of millions of dollars of illegal profits along avoiding losses.
The government accused former portfolio manager Richard Lee of "conspiracy to commit securities fraud." Prosecutors are seeking to ban to ban SAC founder Steven Cohen from managing client money for the rest of his life.