Sunday, 25 January 2015
Last updated 2 days ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…