Jia Lynn Yang
July 25, 2013
Federal prosecutors unveiled criminal charges Thursday against SAC Capital, the famed hedge fund, citing “institutional practices” that allowed for several employees to engage in insider-trading.
The government charged SAC Capital with wire fraud and four counts of securities fraud. The indictment cites activity that occurred from about 1999 to as recent as 2010, saying employees at the hedge fund engaged in a “pattern” of obtaining inside information about dozens of publicly traded companies.
“Unlawful conduct by individual employees and an institutional indifference to that unlawful conduct resulted in insider trading that was substantial, pervasive and on a scale without known precedent in the hedge fund industry,” said the indictment.
This article was posted: Thursday, July 25, 2013 at 11:26 am