Grassley Says SEC Received 65 SAC Referrals

Jun 16 2011 | 12:01pm ET

The Securities and Exchange Commission has received at least 65 referrals about suspicious trading by SAC Capital Advisors, a furious senator revealed yesterday.

Sen. Charles Grassley (R-Iowa), to date stymied in his efforts to get the regulator to explain how it handled those referrals, had previously sought information on only 19 of them. Grassley is now demanding to know how the SEC acted on all of the referrals, some of which are more than a decade old.

Grassley's former focus was only on referrals from the Financial Industry Regulatory Authority. The new list includes referrals from stock exchanges.

"This substantially expands the number of referrals in the SEC's possession to 65, which, thus far, you have provided no evidence that the SEC has investigated or acted upon," Grassley wrote to SEC Chairman Mary Schapiro.

"The SEC needs to explain how it handled these referrals," he said in a statement. "I'm looking for an accounting of what happened to determine whether the agency is doing its job."

The SEC last week told Grassley that it "generally" does not comment on the status of investigations "or related referrals."

SAC has not been accused of any wrongdoing and is not technically the target of Grassley's investigation. Still, the firm noted that referrals "are neither findings nor allegations of insider trading" and that, "given the size of our firm, our active investment style and the period covered, we are not surprised by the number of referrals."

SAC has said it is cooperating with the investigation and that it has met with members of Grassley's staff.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of