SAC Pleads Not Guilty To Insider Trading

Jul 26 2013 | 11:38am ET

SAC Capital Advisors pleaded not guilty to criminal insider-trading charges this morning as it seeks to do what no other major financial firm has ever done: survive an indictment.

At least six SAC lawyers, including its general counsel, Peter Nussbaum, filled the lower Manhattan courtroom to see the indictment against the hedge fund unsealed, and to answer it: "Not guilty," Nussbaum said, to all five counts.

SAC was indicted yesterday, accused of an unprecedented insider-trading scheme that lasted more than a decade and produced "hundreds of millions of dollars" in illicit profits trading on at least 20 different companies. In a parallel civil forfeiture claim, the government is seeking some $10 billion from the hedge fund, more than it will have in assets under management when it finishes paying out redemptions at the end of the year.

Manhattan U.S. Attorney Preet Bharara called SAC a "veritable magnet for market cheaters," and prosecutor Antonia Apps told U.S. District Judge Laura Taylor Swain that it would turn over a "rather tremendous volume" of documents to the hedge fund, including wiretap recordings, within 30 days.

One of SAC's lawyers, Theodore Wells, said he was "most concerned" to obtain statements given by former SAC employees. Apps said it was not clear which of those statements it would have to produce.

Swain scheduled the next hearing in the case for Sept. 24, to discuss the evidence in the case.

"SAC has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously," SAC spokesman Jonathan Gasthalter said. "The handful of men who admit they broke the law does not reflect the honesty, integrity and character of the thousands of men and women who have worked at SAC over the past 21 years. SAC will continue to operate as we work through these matters."


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.