NPR : News

Filed Under:

Hedge Fund SAC Capital Pleads Not Guilty To Fraud Charges

Hedge fund SAC Capital Advisors has pleaded not guilty to wire and securities fraud, a day after federal prosecutors in New York charged the firm in connection with an alleged insider trading scheme.

Peter Nussbaum, SAC's general counsel, entered the plea on behalf of the firm, one of Wall Street's biggest hedge funds.

Assistant U.S. Attorney Antonia Apps told a federal judge in Manhattan that "voluminous" evidence, including "electronic messages, instant messages, court-ordered wiretaps and consensual recordings" existed to prove that SAC Capital knowingly participated in insider trading over a 10-year period.

SAC's owner, billionaire Steven Cohen, is already the subject of a civil case by the Securities and Exchange Commission relating to two portfolio managers, Mathew Martoma and Michael Steinberg, who prosecutors say were allowed to execute trades based on insider knowledge.

As NPR's Elise Hu reported Thursday, Cohen says he didn't see a key, incriminating email because he gets too many messages.

The firm issued a statement earlier this week saying it "has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously."

In March, SAC affiliates agreed to pay more than $600 million in penalties related to charges that they participated in an insider trading scheme involving a clinical trial for a new Alzheimer's drug.

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

NPR

Writer James Alan McPherson, Winner Of Pulitzer, MacArthur And Guggenheim, Dies At 72

McPherson, the first African-American to win the Pulitzer Prize for fiction, has died at 72. His work explored the intersection of white and black lives with deftness, subtlety and wry humor.
NPR

QUIZ: How Much Do You Know About Presidents And Food?

It's week two of the party conventions, and all these speeches are making us hungry. So we made a quiz to test your savvy about presidents and our favorite topic, food.
WAMU 88.5

Your Turn: Ronald Reagan's Shooter, Freddie Gray Verdicts And More

Have opinions about the Democratic National Convention, or the verdicts from the Freddie Gray cases? It's your turn to talk.

NPR

Police Use Fingertip Replicas To Unlock A Murder Victim's Phone

Michigan State University engineers tried 3-D-printed fingertips and special conductive replicas of the victim's fingerprints to crack the biometric lock on his Samsung Galaxy phone.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.