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SAC could see SEC charges
THE 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.