FINANCIAL TIMES: US prosecutors delivered the biggest blow yet in their crackdown on Wall Street insider trading, filing criminal charges against SAC Capital that threaten the survival of the $14bn hedge fund and the fortune of its billionaire founder Steven Cohen.
SAC engaged in insider trading on an unprecedented scale, becoming a “magnet for market cheaters” who were paid handsomely to deliver “high-conviction” trading ideas that would give the fund an “edge” over other investors, the authorities said.
Using the government’s forfeiture powers, prosecutors may seek as much as $10bn in penalties and disgorged profits from SAC, people familiar with the matter said. SAC is 100 per cent owned by Mr Cohen, who along with his staff has provided the bulk of the fund’s capital… (more)
