Connecticut-based SAC Capital Advisors is planning to shut down its London office as the firm is facing insider trading charges.
SAC president Tom Conheeney told employees in a memo Tuesday that was obtained by Bloomberg that SAC will close the U.K. office, which houses more than 50 employees, by the end of the year. The firm will also cut six of its U.S. employees this week.
Conheeney also said in the memo that the firm came to the decision to “operate as a simpler firm and reduce capital allocations… [due to] the outcome the government is demanding is likely to have a greater than first anticipated impact on the firm.”
Fund managers have been leaving SAC since the firm was charged with fraud in July for allegedly allowing insider trading to go unchecked from 1999 through at least 2010. The Securities and Exchange Commission also charged SAC founder Steve Cohen for failing to prevent insider trading at the firm.
Cohen is currently negotiating a settlement, reportedly between $1.2 billion to $1.4 billion, with the U.S. government.
SAC had about $14 billion in total assets under management as of July 1.