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

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note