Thursday, 24 July 2014
Last updated 4 hours ago
Jan 9 2013 | 1:24pm ET
Former SAC Capital Advisors analyst Wesley Wang named about 20 names as part of his cooperation with authorities' recent insider-trading crackdown.
Wang, who pleaded guilty to insider trading in July, had previously been linked only to the case against Whitman Capital founder Douglas Whitman. But he has provided the names of roughly 20 alleged insider-traders, some of whom have not been charged or even approached.
"Wang has identified a number of individuals involved in insider trading whom the [Federal Bureau of Investigation] has not yet approached and/or whom the government has not yet charged," prosecutors wrote to a federal judge last week. "These individuals have been identified as subjects of criminal investigations."
The letter was submitted as part of a bid for leniency for Wang, who testified against Whitman last year. Wang served as the California hedge fund manager's intern before joining SAC's Sigma Capital Management unit. Whitman, like everyone to date to face a verdict in the insider-trading push, was convicted.
"The full extent of Wang's information and cooperation remains to be realized," prosecutors wrote. He faces up to 10 years in prison when sentenced today, but is seeking probation.
It is unclear whether Wang fingered any other current or former SAC managers; he worked at the firm from 2002 through 2005. He admitted to passing tips to Whitman, former Sigma portfolio manager Dipak Patel and his bosses at Trellus Management, where he worked after leaving SAC. But the revelation of the extent of Wang's cooperation comes as SAC finds itself embroiled in an insider-trading scandal, with another former portfolio manager charged with earning the firm $276 million in illicit profits and a Securities and Exchange Commission lawsuit hanging over its head.
Neither Patel nor Wang's superiors at Trellus, who were not identified, have been charged with crimes. Nor has SAC or founder Steven Cohen, although the authorities have reportedly sought to build a case against the latter and sought the cooperation of the indicted manager, Mathew Martoma.
Fox Business Network reported yesterday that SAC is confident that neither it nor Cohen will be indicted. The firm has denied wrongdoing on the part of both parties.
Wang is one of eight current or former SAC employees charged with insider-trading. He agreed to cooperate with prosecutors after they tapped his phone in 2008 and 2009, after which he wore a wire for investigators.
"Wang's information and consensually-recorded telephone calls and meetings enabled the FBI to pursue various avenues in insider-trading investigations, which yielded tremendous success," prosecutors wrote on Wang's behalf. "The important of Wang's information in this regard cannot be overstated."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…