The U.S. Securities and Exchange Commission has charged SAC Capital Advisors’ Steve Cohen with failing to prevent insider trading at his firm.
The SEC alleged in a statement last week that Cohen “ignored the red flags” from SAC portfolio managers Mathew Martoma and Michael Steinberg to execute trades regarding drugmakers Elan and Wyeth, as well as computer maker Dell, using confidential information. SAC and its hedge fund affiliates CR Instrinsic and Sigma Capital earned and avoided more than $275 million as a result of the trades.
eVestment previously reported that five SAC executives were subpoenaed to testify against SAC’s insider trading activities. Connecticut-based SAC has not been charged with any wrongdoing.
With about 1,000 employees across five offices throughout the world, SAC manages about $15 billion in assets.