Friday, 1 July 2016
Last updated 30 min ago
Aug 30 2013 | 10:53am ET
Prosecutors are making good on their pledge not to shut SAC Capital Advisors down while they seek its conviction on criminal insider-trading charges.
The government asked a federal judge to put its civil forfeiture lawsuit against the hedge fund on hold until after the criminal case is disposed of. The civil suit seeks the forfeiture of "all property, real and personal," derived from the hedge fund's alleged insider-trading, and prosecutors have said they will seek to seize substantially all of SAC's assets if it is convicted. The government has also said it would not interfere with SAC's payment of redemptions to investors, which are expected to leave it with little or no outside capital by the end of the year.
"Civil discovery would adversely affect the ability of the government to conduct the prosecution of a related criminal case," prosecutors said today.
The government a month ago accused SAC of running a decade-long insider-trading scheme. SAC has denied any wrongdoing.