Business & Tech
SAC Capital Hit with Federal Indictment Charging Insider Trading
The Stamford-based firm is owned by Greenwich resident Steven Cohen.
The hedge fund founded by Greenwich billionaire Steve Cohen was named in a federal indictment this week, alleging an insider-trading scheme continued at the firm for a decade.
According to a report in the New York Post, SAC Capital Advisors—which is headquartered in Stamford—was named in the five-count indictment handed down on July 25. Federal prosecutors also announced that an eighth SAC trader has pleaded guilty on charges related to the case and filed a forfeiture action against SAC, according to the report.
The indictment claims "systemic" insider trading occurred unchecked since 1999, according to the report.
SAC, with about $15 billion in assets, issued a statement denying the allegations. Cohen is said to own about half of the company's assets.
The indictment is the latest legal woe for Cohen, who lives on a sprawling estate in backcountry Greenwich. On July 19, he was named in a federal lawsuit filed that accused him of failing to supervise two traders. Earlier this year, SAC settled a suit with the Securities and Exchange Commission, paying a $615 million fine for trading violations.
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