US federal authorities have announced criminal charges against the hedge fund SAC Capital Advisors, one of Wall Street’s most successful firms, calling SAC “a veritable magnet of market cheaters”.
According to the allegations, the firm and its units permitted a ‘systematic’ insider trading scheme to unfold from 1999 to 2010. The activity generated hundreds of millions of dollars in profit for SAC and its founder and owner, the billionaire Steven Cohen, who developed the firm into one of Wall Street’s biggest players over two decades.
Preet Bharara, the US attorney for the Southern District of New York, said that the scheme at the firm was “substantial, pervasive and on a scale without known precedent in the history of hedge funds.”
Although Cohen himself was not charged, the 41-page indictment against the firm states that he “fostered a culture that focused on not discussing inside information too openly, rather than not seeking or trading on such information in the first place.” Earlier this month the Securities and Exchange Commission (SEC), which imposed a US$600m fine on SAC back in March, filed a civil action against the firm’s owner, which accused him of failing to adequately supervise his employees.
The SEC charges by accuse the Stamford, Connecticut-based fund with wire fraud and four counts of securities fraud that amount to ‘hundreds of millions’ made illegally over a decade, according to the filing, while papers filed in Manhattan federal court seek forfeiture of ‘any and all’ assets still owned by SAC.
The criminal indictment lists eight former SAC employees who the government said engaged in misconduct while at the fund; six of them have already pleaded guilty to individual criminal charges, and are expected to testify in a trial against SAC.
On-Demand Treasury Management Solutions continue to gain increased adoption in the US and EMEA regions.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.
Treasurers are being expected to do more work with fewer resources than ever before, so it is little wonder that the automation of day-to-day operations was highly discussed on the second day of EuroFinance, the annual treasury event held in Barcelona this week.
Chicago based Treasury Management System (TMS) vendor GTreasury and Sydney based risk and treasury management vendor Visual Risk have joined forces in a strategic alliance to ... read more