USA v. SAC Capital Hedge Fund--Criminal Charges (New York)

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Addie
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USA v. SAC Capital Hedge Fund--Criminal Charges (New York)

Postby Addie » Thu Jul 25, 2013 11:07 am

[link]New York Times,http://dealbook.nytimes.com/2013/07/25/sac-capital-is-indicted/?_r=1&[/link]





SAC Capital Is Indicted





Federal authorities announced a raft of criminal charges on Thursday against SAC Capital, the hedge fund run by the billionaire Steven A. Cohen, an unusually aggressive move that could cripple one of Wall Street’s most successful stock trading firms.





In the 41-page indictment that includes four counts of securities fraud and one count of wire fraud, prosecutors charged the fund and its units with carrying out a broad insider trading scheme between 1999 and 2010. The case seeks to attribute certain criminal acts of employees to the company itself.





The case also takes aim at SAC for a breakdown in internal controls — and ethics. The indictment cited “an institutional indifference” to wrongdoing that “resulted in insider trading that was substantial, pervasive and on a scale without known precedent in the hedge fund industry.”





The case, announced by federal prosecutors and the F.B.I. in Manhattan, is the culmination of an investigation that spanned a decade. As the federal government mounted a relentless crackdown against insider trading, an investigation that reached into corporate board rooms and Wall Street trading floors, it zeroed in on SAC as a central target. ...





The government’s effort to root out insider trading on Wall Street has swept up more than 80 people; of those, 73 have either been convicted or pleaded guilty.

Shut up! We can't hear the mimes! -Jacques Prévert, Les Enfants du Paradis

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TexasFilly
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USA v. SAC Capital Hedge Fund--Criminal Charges (New York)

Postby TexasFilly » Thu Jul 25, 2013 1:03 pm

One of my favorite TV shows is American Greed which runs on CNBC or its sister station, depending on the time of day. Although they usually focus on Ponzi scheme type characters, sometimes they have some interesting stories on there. The greed in those cases usually runs both ways.





I read the print version of the NY Times this morning which had an article on the impending indictment. Notably, it said that of the $15 Billion SAC managed, $8 billion was Mr. Cohen's own money.





[edit]Corrected grammar error. Thanks to my Editor for the Quick and Stern Admonishment! :lol:[/edit]

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Addie
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USA v. SAC Capital Hedge Fund--Criminal Charges (New York)

Postby Addie » Fri Jul 26, 2013 10:56 am

[link]Associated Press,http://www.chron.com/news/crime/article/Hedge-fund-pleads-not-guilty-to-US-fraud-charges-4688182.php[/link]





Hedge fund pleads not guilty to US fraud charges





NEW YORK (AP) — A not guilty plea has been entered on behalf of a large hedge fund charged in a criminal indictment with letting insider trading occur over a 10-year period.





The plea was entered Friday morning in Manhattan federal court by Peter Nussbaum, longtime general counsel for SAC Capital Advisors. It happened a day after the company was charged with wire and securities fraud.





A prosecutor says the evidence is "voluminous."





Stamford, Conn.-based SAC said in a statement after the charges were announced that it will continue normal operations.





It said it "has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously."

Shut up! We can't hear the mimes! -Jacques Prévert, Les Enfants du Paradis

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SueDB
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USA v. SAC Capital Hedge Fund--Criminal Charges (New York)

Postby SueDB » Fri Jul 26, 2013 2:37 pm

[link]Associated Press,http://www.chron.com/news/crime/article/Hedge-fund-pleads-not-guilty-to-US-fraud-charges-4688182.php[/link]





Hedge fund pleads not guilty to US fraud charges





NEW YORK (AP) — A not guilty plea has been entered on behalf of a large hedge fund charged in a criminal indictment with letting insider trading occur over a 10-year period.





The plea was entered Friday morning in Manhattan federal court by Peter Nussbaum, longtime general counsel for SAC Capital Advisors. It happened a day after the company was charged with wire and securities fraud.





A prosecutor says the evidence is "voluminous."





Stamford, Conn.-based SAC said in a statement after the charges were announced that it will continue normal operations.





It said it "has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously."

Hedge fund pleads not


How do you send a Hedge Fund to Jail?
You can follow the action, which gets you good pictures.
You can follow your instincts, which'll probably get you in trouble.
Or... you can follow the money - The Two Jakes -

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RTH10260
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USA v. SAC Capital Hedge Fund--Criminal Charges (New York)

Postby RTH10260 » Sat Jul 27, 2013 7:13 pm

[link]Associated Press,http://www.chron.com/news/crime/article/Hedge-fund-pleads-not-guilty-to-US-fraud-charges-4688182.php[/link]





Hedge fund pleads not guilty to US fraud charges





NEW YORK (AP) — A not guilty plea has been entered on behalf of a large hedge fund charged in a criminal indictment with letting insider trading occur over a 10-year period.





The plea was entered Friday morning in Manhattan federal court by Peter Nussbaum, longtime general counsel for SAC Capital Advisors. It happened a day after the company was charged with wire and securities fraud.





A prosecutor says the evidence is "voluminous."





Stamford, Conn.-based SAC said in a statement after the charges were announced that it will continue normal operations.





It said it "has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously."

Hedge fund pleads not


How do you send a Hedge Fund to Jail?

Transfer its assets to Fort Knox w/o interest :?:

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Addie
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USA v. SAC Capital Hedge Fund--Criminal Charges (New York)

Postby Addie » Thu Apr 10, 2014 1:19 pm

[link]Financial Times,http://www.ft.com/cms/s/0/2de72424-c0c0-11e3-8578-00144feabdc0.html[/link]





US judge accepts SAC insider guilty plea and settlement





A US judge accepted the guilty plea by hedge fund SAC Capital and endorsed the agreed upon $1.8bn fine to resolve a long-running investigation into insider trading that has forced the fund to close to outside money.





SAC, the once unrivalled hedge fund, has since renamed itself Point72, after its Stanford, Connecticut, address. It will no long manage money from external investors and be subject to a compliance monitor.





The fund, through its general counsel, pleaded guilty to insider trading in November but the judge did not finalise the pact until Thursday.





“The crimes the defendants committed were striking in magnitude and striking” in its disregard for the law, said Judge Laura Swain when issuing the sentence.





“The crimes clearly were motivated by greed.”





About $616m of the sentence will be covered by a previous settlement reached between the hedge fund and the Securities and Exchange Commission.

Shut up! We can't hear the mimes! -Jacques Prévert, Les Enfants du Paradis


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