SAC Insider-Trading Investigation Continues, Bharara Says
The U.S. probe of SAC Capital Advisors LP and its founder Steven A. Cohen is “ongoing” and the indictment of the fund addresses “pervasive” criminal conduct there, Manhattan U.S. Attorney Preet Bharara said.
SAC Capital was indicted July 25 in what Bharara called an unprecedented, decade-long insider trading scheme that helped the Stamford, Connecticut-based fund earn hundreds of millions of dollars in illicit profits. Prosecutors cited separate alleged insider-trading schemes by at least eight current and former fund managers and analysts.
In an interview today on “CBS This Morning,” television news program host Charlie Rose asked Bharara if his office didn’t have enough evidence to charge Cohen.
“As I said when we announced the charges, the investigation is ongoing, it is not closed,” Bharara said. “And at this point, we indicted the hedge fund as I said, at the time that we announced the case, because of the degree and nature and scope of the misconduct that had gone on there for a number of years as laid out in great detail.”
While Cohen, 57, wasn’t charged, prosecutors described him in the indictment as “the fund owner” and said he “encouraged” SAC employees to obtain trading information from company insiders while ignoring indications that it was illegal. Bharara’s office also filed a related money-laundering suit against the fund on July 25. Cohen has denied any wrongdoing.
Six current or former SAC employees have pleaded guilty to insider trading charges including Noah Freeman, Donald Longueuil, Jon Horvath, Wesley Wang, Richard Choo-Beng Lee and Richard Lee. All except Longueuil are cooperating with the U.S.
Two others, former fund manager Mathew Martoma, accused last year in the most lucrative insider-trading scheme in U.S. history, and SAC portfolio manager Michael Steinberg, who was charged in March with insider trading on technology companies, have pleaded not guilty and are scheduled for trial in November.
The cases are: U.S. v. SAC Capital Advisors LP, 13-CR-00541; U.S. v. SAC Capital Advisors, LP 13-CV-5182, U.S. District Court for the Southern District of New York (Manhattan).
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