Latest Breaking News

onehandle

(51,122 posts) Thu Jul 25, 2013, 10:00 AM Jul 2013

SAC Capital Indicted on Fraud Charges in Insider Trading Case

Source: New York Times

Federal authorities announced on Thursday a raft of criminal charges against SAC Capital, the hedge fund run by the billionaire Steven A. Cohen, an unusually aggressive move that could cripple one of Wall Street’s most successful stock trading firms.

In the 41-page indictment that includes four counts of securities fraud and one count of wire fraud, prosecutors charged the fund and its units with carrying out a broad insider trading scheme between 1999 and 2010. The case seeks to attribute certain criminal acts of employees to the company itself.

The indictment also takes aim at SAC for “an institutional indifference” to wrongdoing that “resulted in insider trading that was substantial, pervasive and on a scale without known precedent in the hedge fund industry.”

The case, announced by federal prosecutors and the F.B.I. in Manhattan, is the culmination of an investigation that spanned a decade. As the federal government mounted a relentless crackdown against insider trading, an investigation that reached into corporate board rooms and Wall Street trading floors, it zeroed in on Mr. Cohen as a central target.

Read more: http://dealbook.nytimes.com/2013/07/25/sac-capital-is-indicted

18 replies

= new reply since forum marked as read

Highlight:

SAC Capital Indicted on Fraud Charges in Insider Trading Case (Original Post) onehandle Jul 2013 OP

Had to look that one up... wildbilln864 Jul 2013 #1

this is potentially a game changer rdking647 Jul 2013 #2

DealB%K has a retort to this slant of the issues. (NOTE: DealB%k is funded by Goldman Sachs) laserhaas Jul 2013 #11

K&R Arctic Dave Jul 2013 #3

Hopefully, Sir, This Is Only the Start The Magistrate Jul 2013 #4

And founder Steven Cohen warrant46 Jul 2013 #6

I Agree, Sir: Confiscation Entire And Jail For A Decade Are Really Indicated The Magistrate Jul 2013 #8

Cohen = La rondelle ne roule pas pour lui. warrant46 Jul 2013 #10

At last! JustAnotherGen Jul 2013 #5

I've been a student of RICO now - for about 8 months - and can't wait to shove RICO up Romney's arse laserhaas Jul 2013 #12

Closer and closer. BlueToTheBone Jul 2013 #17

Life without parole.... Uben Jul 2013 #7

Hold on there Uben - me thinks you forget whom we are. laserhaas Jul 2013 #13

A pox on all their houses. Jackpine Radical Jul 2013 #15

I hate criminals! Especially white collar criminals Uben Jul 2013 #16

SEIZE THEIR ASSETS RIGHT F$CK$NG NOW!!! KansDem Jul 2013 #9

Concur - Greatly! laserhaas Jul 2013 #14

Lock em up and throw away the key.. Cohen will look great in orange. mountain grammy Jul 2013 #18

wildbilln864

(13,382 posts)

1. Had to look that one up...

Reply to onehandle (Original post)

Thu Jul 25, 2013, 10:09 AM

Jul 2013

http://dealbook.nytimes.com/2013/07/24/indictment-of-fund-is-a-rare-and-bold-move/?_r=0

rdking647

(5,113 posts)

2. this is potentially a game changer

Reply to onehandle (Original post)

Thu Jul 25, 2013, 10:11 AM

Jul 2013

the indictment itself may cause its brokers to cut them off. this could be the death knell for teh company.
now maybe the feds will go after a major bank. a similar type of indictment against a major bank (say for example jp morgan) would effectively put the bank out of business. all you have to do is kill one and the rest will fall into line rather than meet the same fate

laserhaas

(7,805 posts)

11. DealB%K has a retort to this slant of the issues. (NOTE: DealB%k is funded by Goldman Sachs)

Reply to rdking647 (Reply #2)

Thu Jul 25, 2013, 11:21 AM

Jul 2013

The reflection of DealB%k is that the feds regret their prosecution of Arthur Anderson and Enron.

In both cases - America was snowed (in) from the real issues at play.

DealB%k had this to say in their article "For SAC: Indictment May Imperil Its Survival"

Is SAC Capital Advisors going to be the next Arthur Andersen, a company destroyed by an indictment?

If so, there will be one primary distinction: Government officials came to regret forcing Andersen, the auditor of Enron and one of the Big Five accounting firms at the time, out of business.

Arctic Dave

(13,812 posts)

3. K&R

Reply to onehandle (Original post)

Thu Jul 25, 2013, 10:13 AM

Jul 2013

The Magistrate

(95,248 posts)

4. Hopefully, Sir, This Is Only the Start

Reply to onehandle (Original post)

Thu Jul 25, 2013, 10:16 AM

Jul 2013

The whole nest of vipers needs cleaning out.

warrant46

(2,205 posts)

6. And founder Steven Cohen

Reply to The Magistrate (Reply #4)

Thu Jul 25, 2013, 10:36 AM

Jul 2013

Keeps his $$$ and won't be charged

The Magistrate

(95,248 posts)

8. I Agree, Sir: Confiscation Entire And Jail For A Decade Are Really Indicated

Reply to warrant46 (Reply #6)

Thu Jul 25, 2013, 10:41 AM

Jul 2013

Pour encourager les autres....

warrant46

(2,205 posts)

10. Cohen = La rondelle ne roule pas pour lui.

Reply to The Magistrate (Reply #8)

Thu Jul 25, 2013, 10:53 AM

Jul 2013

JustAnotherGen

(31,828 posts)

5. At last!

Reply to onehandle (Original post)

Thu Jul 25, 2013, 10:24 AM

Jul 2013

Don't know if anyone is familiar with the history of SAC - but this is an interesting part of the scheme:

http://www.bloomberg.com/news/2013-04-03/steven-cohen-s-ex-wife-has-her-suit-against-him-reinsted.html

Patricia Cohen said in her lawsuit that SAC Capital was “the product of an ongoing racketeering scheme” that has engaged in insider trading, bank fraud, money laundering and other misconduct. In June 1986, Cohen, under oath, refused to answer regulators' questions about alleged insider trading involving a General Electric acquisition, invoking his right not to incriminate himself, according to her complaint.

She also had claimed she was entitled to at least half of his business, saying it was developed in part with $1 million that she earned from a real estate business.

Steven Cohen said the couple had $17 million in marital assets in the divorce, and Patricia Cohen accepted a $3.5 million settlement, $2.5 million of which was an apartment, according to the complaint.

The case is Cohen v. Cohen, 11-1390, U.S. Court of Appeals for the Second Circuit (Manhattan), and 09-cv-10230, U.S. District Court, Southern District of New York (Manhattan).

Steve Cohen does not do any deals on the up and up. The only thing that could potentially save his neck is if they can't prove he ever personally read the emails. But I don't think they would have gotten this far if they didn't have it covered. And think we can give at least a nod of thanks to Patricia Cohen's greed . . . her relentless pressure probably kept this moving along.

laserhaas

(7,805 posts)

12. I've been a student of RICO now - for about 8 months - and can't wait to shove RICO up Romney's arse

Reply to JustAnotherGen (Reply #5)

Thu Jul 25, 2013, 11:25 AM

Jul 2013

Hopefully sooner than later.

It is good that others are getting acquainted with the subject.

This is why Romney destroyed his Olympic Records, his Governor computer hard drives and his MNAT law firm destroyed the Books & Records in our eToys case.

Can't have evidence - if there t'aint any laying around.....

(too bad for Pitten's though - that those dang SEC INFO guys had the proof he was still CEO of Bain)

BlueToTheBone

(3,747 posts)

17. Closer and closer.

Reply to laserhaas (Reply #12)

Thu Jul 25, 2013, 01:09 PM

Jul 2013

the wheels of karma are relentless.

Uben

(7,719 posts)

7. Life without parole....

Reply to onehandle (Original post)

Thu Jul 25, 2013, 10:37 AM

Jul 2013

....it's the only justice we can tolerate for these greed-driven pieces of shit. Take everything they have, leave them penniless and in prison for their eternity

laserhaas

(7,805 posts)

13. Hold on there Uben - me thinks you forget whom we are.

Reply to Uben (Reply #7)

Thu Jul 25, 2013, 11:30 AM

Jul 2013

Life in prison for white collar criminals does not serve society well.

Taking away their gelt - that they got by stealing - is a good thing to do. Stopping their crimes - a must thing to do. And I'm a victim of white collar fraud massive; but my vengeance desires is that there were better enforcement and more appropriate punishment.

Tom Petters is part of Mitt Romney's gang - along with fraudster Marc Dreier - who destroyed my life/career and took my life savings. They don't deserve 50 years in prison (nor does Madoff his 125 years)

People who take our tax dollars as public servants - who help bury the crime for the new car the crooks bought them; THOSE are the ones in need of a hefty - deterrent - sentencing.

Jackpine Radical

(45,274 posts)

15. A pox on all their houses.

Reply to laserhaas (Reply #13)

Thu Jul 25, 2013, 11:42 AM

Jul 2013

When some desperate schlub can get 20 for sticking up a Stop&Rob with a toy pistol, I got no problem seeing the whole bunch of these high-rollers going to the Federal Country Club for a really prolonged vacation.

Uben

(7,719 posts)

16. I hate criminals! Especially white collar criminals

Reply to laserhaas (Reply #13)

Thu Jul 25, 2013, 11:45 AM

Jul 2013

It'll never stop if there are not serious consequences for these criminals. Take away their freedom, forever, and maybe, just maybe, they'll think twice before trying to win by cheating. Also, they should lose everything they have accumulated in life. It's not like they have to steal to feed their families, they steal to enrich themselves. I stand by my statement.

KansDem

(28,498 posts)

9. SEIZE THEIR ASSETS RIGHT F$CK$NG NOW!!!

Reply to onehandle (Original post)

Thu Jul 25, 2013, 10:44 AM

Jul 2013

Use the seizure and forfeiture laws to seize their assets and property! You know, like some DA would do to someone caught smoking a doobie?

Do it now! Then go after the banksters, the Wall Street liars, the swindlers, the crooks, the money launderers.

Go after them all and seize their assets and property! NOW!!!

laserhaas

(7,805 posts)

14. Concur - Greatly!

Reply to KansDem (Reply #9)

Thu Jul 25, 2013, 11:31 AM

Jul 2013

It's about time the USDoJ.Gov

Did their Job!

mountain grammy

(26,626 posts)

18. Lock em up and throw away the key.. Cohen will look great in orange.

Reply to onehandle (Original post)

Thu Jul 25, 2013, 01:33 PM

Jul 2013

Reply to this discussion