SAC Investigation 'Ongoing,' Bharara Says

Aug 8 2013 | 1:09pm ET

Even after a criminal insider-trading indictment, the federal government is continuing its probe into SAC Capital Advisors and founder Steven Cohen.

Manhattan U.S. Attorney Preet Bharara told CBS's Charlie Rose that his office hadn't given up on more charges or more defendants, including Cohen. Asked directly by Rose whether he had enough evidence to charge Cohen, Bharara said, "The investigation is ongoing. It is not closed. And at this point, we indicted the hedge fund as I said, at the time that we announced the case, because of the degree and nature and scope of the misconduct that had gone on there for a number of years as laid out in great detail."

Meanwhile, Bharara's office is seeking to keep Cohen's hands off the Securities and Exchange Commission's evidence against him. The SEC has sued Cohen for failure to supervise his employees.

Prosecutors have asked an administrative law judge to stay the SEC's case against Cohen until the criminal case against SAC runs its course. The SEC is not opposed to the delay, and neither is Cohen—provided that the SEC turn over the evidence in its possession in the meantime.

Waiting until after the criminal case concludes would leave Cohen's lawyers with too little time to review the documents, which they say are five times as voluminous as the evidence in the criminal case.

"Both arguments are incorrect," Assistant U.S. Attorney Antonia Apps wrote in a court filing. "The U.S. Attorney respectfully submits that the public interest would best be served by staying the administrative proceeding pending prosecution of the related criminal cases."

Apps added that Cohen "is mistaken about the quantity of data in the U.S. Attorney's possession," and that his lawyers "will receive largely the same document discovery through the criminal case against the SAC entity defendants that they would receive from the Commission as part of its document production."

Cohen isn't the only one fighting for a sneak peak at the SEC's case against him. Lawyers for Michael Steinberg, one of the SAC managers facing trial on insider-trading charges, have asked a court to allow them access to witnesses in the SEC's parallel civil case against him. Steinberg's criminal trial is set to begin on Nov. 18.

Barry Berke wrote, "even if Mr. Steinberg could complete all of his civil discovery after his criminal trial, that does not mean that he should be compelled to do so." Berke said he wants to depose "three narrow sets" of witnesses in the SEC case, including the cooperating witnesses who testified in the related case against former hedge fund managers Todd Newman and Anthony Chiasson, even if prosecutors don't call them at the criminal trial.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

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.