SAC Probe, Two-Year Old SEC Insider-Trading Case Linked

Dec 13 2012 | 2:15pm ET

Part of the insider-trading probe into SAC Capital Advisors is tied to a two-year-old insider-trading lawsuit against another investor.

Among the potentially illegal trades at SAC that federal investigators are looking at are its 2010 trades in shares of pharmaceutical company InterMune. SAC bought up more than four million InterMune shares in the first quarter, coinciding with an announcement that sent the company's stock price soaring. But a drug rejection two months later sent the shares into a free-fall, but not before SAC dumped almost all of them.

Six months later, the SEC sued two unidentified traders in InterMune stock options. That lawsuit is tied to the current probe of SAC, Bloomberg News reports.

The traders hit with that lawsuit were Michael Sarkesian and his investment firm, Quonre Inc. In March, Sarkesian and the vehicle settled the SEC's charges, agreeing to pay more than $700,000 in forfeitures and fines. Neither admitted or denied any wrongdoing.

The SEC, which filed its suit against Sakesian in December 2010, alleged that he had been tipped about the good news that SAC allegedly traded on earlier in the by a "source" who stood to gain some "personal benefit." The source was not identified by the SEC.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note