SAC Seeks Ex-Prosecutor, Regulator For New Surveillance Post

Feb 26 2014 | 1:25pm ET

After years of hounding by prosecutors and regulators, SAC Capital Advisors plans to hire one to help avoid future legal difficulties.

SAC told employees yesterday that it would hire a chief surveillance officer to monitor trading at the firm, which is in the process of becoming a family office. The firm hopes to hire a former prosecutor or regulator for the new post in the spring, The New York Times reports.

The CSO will report to SAC President Tom Conheeney.

SAC pleaded guilty to insider-trading charges last year as part of a $1.8 billion settlement with the government. A federal judge will decide whether or not to approve that deal, which requires SAC to cease managing outside capital, within weeks.

Conheeney and SAC founder Steven Cohen wrote that they "are committed to doing everything in our power to ensure we never go through again what we have experienced over the last few years."

The executives also gave their employees—down to about 850 today from about 1,000 a year ago—an update on the restructuring process. The two said SAC had return most outside capital in January and would be renamed in April. They also laid out how the firm will be restructured, with the consolidation of several units.

SAC also plans to place a new management layer between Cohen, who still faces Securities and Exchange charges for failure to supervise his insider-trading employees, and Conheeney, and the firm's traders. The changes "will make us a stronger firm as we move forward together," the two wrote.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…