Senator Wants Reports Of 'Suspicious Trading' At SAC

May 9 2011 | 1:30pm ET

With his own trades at SAC Capital Management now under criminal scrutiny, Steven Cohen is facing another regulatory indignity.

Sen. Charles Grassley (R-Iowa), the senior Republican on the Senate Judiciary Committee, has asked the Financial Industry Regulatory Authority to turn over all reports of "suspicious trading" by SAC submitted to it by exchanges over the last 11 years.

Neither Cohen nor SAC itself have been formally accused of any wrongdoing—indeed, prosecutors say their current look at Cohen's trading at SAC, stemming from the guilty pleas of two former SAC traders, is no indication that trades he made on their recommendation were based on confidential information or, if they were, that Cohen had any inkling of it. But the firm, and Cohen himself, have long appeared to be a major target of the investigation which ensnared the two former SAC employees and 10 others. And both Cohen and the firm have been the subject of a number  of investigations and innuendos.

"While SAC Capital itself has not been charged, these allegations raise serious questions about the corporate culture at SAC Capital and undercut investor confidence in a fair and balanced playing field," Grassley wrote. "In order for Congress to more fully understand the potential scope of suspicious trading activity at SAC Capital, please provide copies of all referrals from self-regulating organizations to the Financial Industry Regulatory Authority citing SAC Capital and any of SAC Capital's identifiable subsidiary funds, dating from Jan. 1, 2000, to the present."

FINRA said it would respond "in a cooperative way" to Grassley's demands within days.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note