Did SAC Capital Turn a Blind Eye to Insider Trading?

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Accounting

U.S. Attorney for the Southern District of New York Preet Bharara on Thursday announced that his office has indicted SAC Capital Advisors

on one count of wire fraud and four counts of securities fraud. Eight portfolio managers and research analysts have been charged with or convicted of insider trading. It’s important to point out that Steven Cohen — who owns the fund — was not individually charged.

“This Indictment charges the corporate entities responsible for the management of a major hedge fund with criminal responsibility for insider trading offenses committed by numerous employees and made possible by institutional practices that encouraged the widespread solicitation and use of illegal inside information,” the indictment reads. “Unlawful conduct by individual employees and an institutional indifference to that unlawful conduct resulted in insider trading that was substantial, pervasive and on a scale without known precedent in the hedge fund industry.”

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business