Hedge Fund SAC Capital Pleads Not Guilty To Fraud Charges | WAMU 88.5 - American University Radio

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

For The Midterm Elections, A Book On 'What It Takes' To Win

The midterm elections are less than two weeks away. Writer Michael Schaub recommends a book that explores what it's like to run for office and live through all the dramatic ups and downs.
NPR

A Wisecracking Biochemist Shares Her Kitchen ABCs

Shirley Corriher, author of Cookwise: The Hows and Whys of Successful Cooking, has tips on taking the bitter bite out of coffee, and holding onto cabbage's red hue while it's in the pan.
NPR

For The Midterm Elections, A Book On 'What It Takes' To Win

The midterm elections are less than two weeks away. Writer Michael Schaub recommends a book that explores what it's like to run for office and live through all the dramatic ups and downs.
NPR

New Facebook App A Throwback To Old Chatrooms

Facebook's new app, Rooms, harkens back to the days of 1990s anonymous chat rooms. New York Times tech reporter, Mike Isaac, talks about why having secret identities online is a good thing.

Leave a Comment

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