SAC could see SEC charges

 
City A.M. Reporter
US g

US government is threatening to file civil securities fraud charges against SAC Capital Advisors and is tightening the regulatory screws around Steven A. Cohen, the $14bn hedge fund’s founder and one of the industry’s most famous traders.

The move comes a week after a former SAC Capital employee was charged with running the most lucrative insider trading scheme ever in a series of transactions Cohen signed off on.

Cohen and a top SAC executive told investors on a 20-minute long conference call yesterday that the Securities and Exchange Commission had issued a so-called Wells notice to the firm.

SAC has averaged an annual return of 30 per cent since Cohen founded it in 1992.
Cohen has not been accused of wrongdoing.