In the biggest indictment of a financial firm since auditor Arthur Andersen was charged in 2002, criminal allegations were brought against SAC Capital Advisors LP, which U.S. Attorney Preet Bharara called a “magnet for market cheaters.”
SAC is accused of “systemic insider trading” that resulted in “hundreds of millions of dollars of illegal profits and avoided losses at the expense of members of the investing public” over an 11-year period, according to a sealed 41-page indictment filed by the U.S. Attorney’s Office for the Southern District of New York.
In a statement provided by a spokesman for SAC, based in Stamford, Conn., the company said, “SAC has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously. The handful of men who admit they broke the law does not reflect the honesty, integrity and character of the thousands of men and women who have worked at SAC over the past 21 years. We will continue to operate as we work through these matters.”
After a nearly decade-long investigation, federal prosecutors in New York hosted a press conference this afternoon about the large and powerful hedge fund run by billionaire Steven A. Cohen, 57. Bharara, who did not rule out further indictments, said there have been eight SAC employees found guilty or charged with insider trading.
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