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

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...