Services

Five-Count Criminal Indictment Hits SAC Capital

gavel
Thinkstock
The U.S. Attorney for the Southern District of New York has issued a five-count criminal indictment of SAC Capital Advisors, including four charges of securities fraud and one charge of wire fraud. The hedge fund, run by Steven A. Cohen, is one of country’s most successful stock-trading companies.

Cohen himself has apparently escaped any criminal charges, but he does face charges from the U.S. Securities and Exchange Commission (SEC) for failing properly to supervise employees of SAC Capital who have been charged with insider trading.

The 40-page indictment traces insider trading by SAC Capital from 1999 to 2010. In an overview of the insider trading scheme, the U.S. attorney claims that the “predictable and foreseeable result” of SAC Capital’s “relentless pursuit of an ‘information edge’” was “systematic insider trading … resulting in hundreds of millions of dollars of illegal profits and avoided losses at the expense of members of the investing public.”

On the charge of wire fraud, the indictment claims that the “unlawful conduct resulted in insider trading that was substantial, pervasive and on a scale without known precedent in the hedge fund industry.”

The securities fraud charges are directed at four separate SAC Capital entities: SAC Capital L.P., SAC Capital Advisors LLC, CR Intrinsic and Sigma Capital.

The government is seeking the forfeiture of any asset of any of the SAC Capital entities that may have been gained from the proceeds of the offenses the company is charged with.

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.