Crime: SAC Capital to face indictment
Federal prosecutors are readying criminal charges against SAC Capital Advisors, said Ben Protess and Peter Lattman in The New York Times. The charges would bring an end to a nearly decade-long insider-trading investigation that “could cripple” one of Wall Street’s most prominent and successful trading firms. While CEO and founder Steven Cohen “is not expected to be charged criminally,” sources said authorities could bring individualcharges against other SAC employees. People familiar with the investigation said the Justice Department plans to “navigate around” the statute of limitations on some charges by filing a larger conspiracy case against SAC.
An indictment would be a huge blow for SAC, said Jenny Strasburg and Michael Rothfeld in The Wall Street Journal. To date, “no major financial firm has survived a criminal indictment.” Already, the investigation has “taken a toll on SAC.” Four former employees have pleaded guilty to criminal insider-trading activity; one other and a current employee still face trial. This week, the Securities and Exchange Commission slapped Cohen himself with civil charges, alleging he failed to properly supervise two rogue traders. And earlier this year, the firm paid a record $616 million penalty to settle civil insider-trading allegations with the SEC.
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Regulators: Miami charged with fraud
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