SAC Capital: Firm doesn't tolerate insider trading

Associated Press
In this Thursday, Feb. 10, 2011, photo, S.A.C. Capital Partners headquarters is shown,in Stamford, Conn. The hedge fund operated by embattled billionaire Steven A. Cohen was hit with white-collar criminal charges Thursday, July 25, 2013, that accused the fund of making hundreds of millions of dollars illegally, and a related government lawsuit said insider trading was pervasive and unprecedented at the firm. (AP Photo/Mark Lennihan)
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NEW YORK (AP) — The hedge fund founded by billionaire Steven A. Cohen says it doesn't tolerate insider trading.

An indictment was unsealed in federal court Thursday charging SAC Capital Advisors with wire and securities fraud.

Cohen isn't named as a defendant. But prosecutors say he enabled and promoted insider trading.

In a statement, SAC Capital says it "has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously."

It also says employees who broke the law don't "reflect the honesty, integrity and character of the thousands of men and women who have worked at SAC over the past 21 years."

Manhattan U.S. Attorney Preet Bharara (buh-RAH'-ruh) says the government is not trying to force the hedge fund to close, though past prosecutions have done just that.

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