Steven Cohen, founder of a hedge fund hedge fund SAC Capital Advisors LP, is facing renewed scrutiny from U.S. regulators over insider trading.
SAC Capital has come under scrutiny on multiple fronts in connection with a broad federal crackdown on insider trading throughout the $2 trillion hedge fund industry.
SAC Capital drew attention in May 2011 when U.S. Senator Charles Grassley asked the Financial Industry Regulatory Authority, the brokerage industry’s self-regulatory body, to provide information on the potential scope of SAC suspicious trading activity.
Finra, which monitors securities markets for suspicious trades, referred to the SEC at least 18 trades by SAC Capital in the past 11 years that were executed close to market-moving announcements including mergers and the release of clinical- trial results for new drugs. The referrals aren’t allegations or proof of securities-law violations.
U.S. criminal prosecutors said in March 2011 they were investigating trading accounts at SAC Capital, including one run by Cohen that consists of the best trading ideas unearthed by the firm’s portfolio managers and analysts.
The people familiar with the matter didn’t specify the exact date of Cohen’s deposition.