Prosecutor going after SAC hints at more to come
26 July 2013 New York
Image: Shutterstock
A federal grand jury has indicted SAC Capital, a US hedge fund, over alleged insider trading.
After six years of investigation, it was charged with four counts of securities fraud and one count of wire fraud. But a statement from the firm said: "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."
New York district attorney Preet Bharara filed the case against SAC Capital. It also contains civil money-laundering charges that may force the hedge fund to give up a significant amount of its assets.
The district attorney held a press conference on the matter on 25 July. He said that eight individuals have been charged so far, with six pleading guilty.
It has also been reported that both Deutsche Bank and Goldman Sachs, which currently provide lending and prime brokerage services to SAC Capital, are rethinking their relationship with the fund given its legal situation.
In the conference, Bharara seemed to indicate that this would not be the first and last criminal case filed against a financial firm.
"To all those who run companies,” said Bharara. “ … But pay attention only to the money the employees make, and not how they make it, hopefully [the] indictment gets your attention."
After six years of investigation, it was charged with four counts of securities fraud and one count of wire fraud. But a statement from the firm said: "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."
New York district attorney Preet Bharara filed the case against SAC Capital. It also contains civil money-laundering charges that may force the hedge fund to give up a significant amount of its assets.
The district attorney held a press conference on the matter on 25 July. He said that eight individuals have been charged so far, with six pleading guilty.
It has also been reported that both Deutsche Bank and Goldman Sachs, which currently provide lending and prime brokerage services to SAC Capital, are rethinking their relationship with the fund given its legal situation.
In the conference, Bharara seemed to indicate that this would not be the first and last criminal case filed against a financial firm.
"To all those who run companies,” said Bharara. “ … But pay attention only to the money the employees make, and not how they make it, hopefully [the] indictment gets your attention."
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