SAC Said to Get Wells Notice From SEC on Insider Trading
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The U.S. Securities and Exchange Commission told SAC Capital Advisors LP that it is considering suing the $14 billion hedge fund run by Steven Cohen for fraud involving alleged insider trading by a former portfolio manager who was arrested last week, according to three people with knowledge of the matter.
The Wells notice sent to SAC Capital cited fraud and control-person liability over its management of CR Intrinsic Investors LLC, a unit of SAC, according one of the people. Investigators are considering extending the claims to Cohen, who wasn’t named in the Wells notice, said the person, who like the others asked not to be named because the information is private.