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SAC Case Began With Insider Tip to FBI on Cohen, Rajaratnam

During his first debriefing by two FBI agents on June 12, 2007, Wall Street insider David Slaine mentioned suspicious trades by two hedge funds: Raj Rajaratnam’s Galleon Group LLC and Steven A. Cohen’s SAC Capital Advisors LP.

His leads paid off. In October 2009, Galleon began shutting down after Rajaratnam’s arrest for trading on inside leaks. Yesterday, prosecutors announced that SAC would plead guilty to insider trading, pay a record $1.8 billion and close the fund to outside investors.