Saturday, 24 September 2016
Last updated 1 day ago
Dec 14 2010 | 6:20pm ET
The Justice Department and FBI have a big fish in their sights, and that fish is hedge fund giant Steve Cohen, reports Charlie Gasparino, senior correspondent for Fox Business Network.
Gasparino’s comments came in relation to the ongoing insider trading probe that recently ensnared the hedge fund industry. The Feds have delivered more than a dozen new subpoenas in the two weeks since the Federal Bureau of Investigation raided the offices of three hedge funds, and according to Gasparino, we are likely to see arrests before year’s end.
“There is a gentleman in the middle they want to snare,” says Gasparino. “Sources are telling us among those top players in the middle, Steve Cohen, the head of SAC Capital, is clearly on the radar screen. The lower level guys are the people they are looking to arrest, flip, gain information from, and make the case against the top guy. It is classic mob related, terrorist related investigation.”
Neither SAC nor Cohen have been accused of any wrongdoing.
Thus far only one arrest has been made in the probe. Late last month, authorities arrested Don Ching Trung Chu and charged him with conspiracy to commit securities and wire fraud. Chu worked at Primary Global Research, which provides the sort of expert-network services at the center of the insider-trading probe. According to prosecutors, Chu passed confidential information to hedge fund manager Richard Choo-Beng Lee, a former SAC Capital Advisors trader and a cooperating witness in the Galleon Group insider-trading case.