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

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.