US$614 mil. fine for SAC hedge fund insider trades
AFPNEW YORK -- The SEC announced insider trading fines of more than US$614 million Friday for affiliates of billionaire Steven A. Cohen's SAC Capital Advisers, dealing another blow to the embattled hedge fund titan.
March 17, 2013, 12:31 am TWN
In a record insider trading settlement, the Securities and Exchange Commission said SAC affiliate CR Intrinsic Investors would pay more than US$600 million to settle charges that it earned massive profits on confidential information involving the clinical trial of an Alzheimer's drug.
The SEC also slapped a US$14 million fine on SAC unit Sigma Capital Management, over charges that Sigma traded on non-public information about the quarterly earnings of Dell and Nvidia.
At the same time, the government has still not charged Cohen himself, a star of the New York hedge fund industry whose profits have stood out in an business accustomed to outsized gains.
“Both investigations are pending, so it is possible there will be additional charges,” George Canellos, the SEC's acting director of enforcement, told reporters.