SAC Capital notified of possible SEC enforcement action
By Svea Herbst-Bayliss and Katya Wachtel | November 29, 2012 2:28 AM EST
Steven A. Cohen's SAC Capital Advisors has received a Wells notice from the U.S. Securities and Exchange Commission, suggesting the regulator may bring civil charges of insider trading against the hedge fund firm, a person familiar with the matter said.
The $14 billion hedge fund firm held a phone call with investors on Wednesday morning to inform them of the notice, the source said.
A Wells notice indicates that SEC staff would recommend a civil enforcement action against the firm.
Cohen, who founded the firm, has not been accused of wrongdoing. He was on the telephone call on Wednesday morning, the source said.
This is the first time the government has indicated it may move against the hedge fund firm itself on insider trading, after previously accusing only former SAC employees.
Last week a fifth former SAC employee was arrested and charged with having used illegally obtained information to trade healthcare stocks Elan Corp Plc and Wyeth, which is now owned by Pfizer Inc
SAC again told investors that it would bear all legal costs in defending itself against any legal action, the source said.
(Reporting By Svea Herbst-Bayliss and Katya Wachtel; Editing by Lisa Von Ahn)
Most Popular Slideshows
- Manny Pacquiao Vs. Chris Algieri World Tour Kick Off Press Conference In Macau [PHOTOS]
- 2014 US Open Update (Day 4 - Men's Singles): Murray, Djokovic, Raonic and Isner Advance to 3rd Round [PHOTOS]
- Prince Harry & Camilla Thurlow Getting Serious, St. Tropez Holiday Before The Prince’s 30th Birthday [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Sept 19 iPhone 6 Release Date Confirmed as Apple Sets Sept 9 iWatch, 2 iPhones Intro - Report
- Hundreds of Men Rape Teen for Three Years
- iPhone 6 Release Date Update: 4.7-Inch Model Scores 65.8% In Screen-To-Size Ratio; A Surprise Entry Scales Top Spot [List Attached]
- Product Recall Alert: Hewlett-Packard Pulls Out 6M Power Cords from US, Canada Over Fire Hazard Concerns, Australia Also Affected
- ISIS Wants $6.6M and Release of Aafia Siddiqui in Exchange of Head of Female US Humanitarian Aid Worker, 1st American Fighting for Jihadis Dead
- Ukraine Ceasefire Looks Remote As Putin Talks Tough At Meeting With Poroshenko
- Google Nexus 6 Release May Be the New Google Nexus X Smartphone as New Details Emerge