SEC Won't Explain SAC Actions

Jun 13 2011 | 12:31pm ET

The Securities and Exchange Commission of Friday refused to disclose how it dealt with referrals about suspicious trading at SAC Capital Advisors, prompting a furious response from the U.S. senator who asked for its explanation.

"We generally do not comment on the status of investigations or related referrals, and, in turn, are not providing information concerning the specific FINRA referrals you identified," Robert Khuzami, the SEC's enforcement director, wrote to Sen. Charles Grassley (R-Iowa). That did not make Grassley, the senior Republican on the Senate Judiciary Committee who gave the SEC more time to respond to his request just days earlier, particularly happy.

"This isn’t what I asked for, and it's not an acceptable response," Grassley said. "I'm looking for the SEC to explain how it handled specific referrals. Did the agency review them and find no credible evidence of wrongdoing? Or are they sitting in a drawer because the agency ignored them?"

Grassley asked about 20 referrals about suspicious trading at SAC. The senator has stressed his focus is the SEC, a frequent target of Grassley's, and not the hedge fund, which has said it is cooperating with the probe.

"My staff continues to analyze the referrals involving SAC Capital, and I'll continue to ask for answers from the SEC," Grassley added.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...