From the criminal indictment just filed in a Manhattan court, charging four SAC Capital corporate entities with responsibility for insider trading conducted at “various times between in or about 1999 through at least in or about 2010″… Read more
This was coming from the Wall Street Journal late on Tuesday:
Federal prosecutors are preparing to announce criminal charges as early as this week against SAC Capital Advisors LP, the hedge-fund company that has been the target of a multiyear investigation into alleged insider trading, according to people familiar with the matter…
The WSJ has got its hands on a list of the 18 “well-timed” SAC Capital trades referred by Finra or its predecessor NASD to the SEC between 2002 and 2011:
SAC Capital Advisors, one of the nation’s most successful hedge funds, is a focus of an SEC investigation into whether traders used inside information to profit from the $15bn takeover of biotechnology firm MedImmune in 2007, the Wall Street Journal reports, citing people familiar. The probe is part of a broad SEC inquiry into trading by various hedge funds, including SAC and its affiliated funds, in stocks connected to some of the biggest health-care deals of the past decade. SAC is facing two other inquiries into its trading activities: by federal prosecutors in New York and by Iowa Senator Charles Grassley.
The US crackdown on alleged insider trading on Wall Street has escalated with criminal fraud charges filed against four hedge fund employees, including two who had worked as portfolio managers at SAC Capital, a $12bn hedge fund group, the FT reports. The hedge fund employees allegedly obtained secret information about six companies from corporate insiders and consultants with Primary Global Research, a California expert network research firm, and made millions of dollars in trading profits. The full SEC complaint is available here. FT Alphaville notes that we’re now approaching 40 people charged with insider trading in the sweep of Galleon, PGR and other employees.
Money managers at SAC Capital Advisors, Citadel, Janus Capital and Wellington Management have received requests for documents from federal investigators examining insider trading practices on Wall Street, the FT reports. SAC, a private investment firm formed by Steven Cohen, has received a subpoena from the federal government, according to a person familiar with the situation. That person stressed that it appeared to be a broad-based request for information involving a number of firms and that there was no indication of any wrongdoing by SAC. The disclosure came a day after three US hedge funds were raided by the Federal Bureau of Investigation amid reports of a wide-ranging probe into possible insider trading on Wall Street. Two of the firms, Level Global Investors and Diamondback Capital Management, were founded by former employees of SAC. The third was Loch Capital Management in Boston. No allegations have been made against any of the firms.