Promote Your Attorney Profile on Law.net - Get Found / Earn More!
Walmart Employees Strike on Black Friday Around the Country
Walmart Employees Strike on Black Friday Around the Country
Netflix Sues Yahoo CIO Michael Kail for Alleged Kickbacks
Netflix Sues Yahoo CIO Michael Kail for Alleged Kickbacks
Walmart Still Fighting Fine from Death of Employee on Black Friday
Walmart Still Fighting Fine from Death of Employee on Black Friday
Microsoft Sues IRS for Information on Contract with Quinn Emanuel
Microsoft Sues IRS for Information on Contract with Quinn Emanuel
Legal Job Listings

SAC Capital Issued Wells Notice

In a report from Reuters, the United States government has threatened to file civil securities fraud charges against SAC Capital Advisors. The government is also tightening things related to Steven A. Cohen, the creator of the $14 billion hedge fund. On Wednesday, Cohen and another top SAC executive told investors that the Securities and Exchange Commission issued a Wells notice to the company, according to sources who listened in on the conference call.

The investors were told of the Wells notice just days after Mathew Martoma was arrested. Martoma is the fund’s former portfolio manager and the fifth person charged with insider trading in association with the fund. Cohen has not been accused of doing anything wrong.

SAC President Tom Conheeney said during the conference call that the firm is going to cover all of the costs to defend itself against legal action taken. He also said that the SEC questioned Cohen about the issue earlier in 2012 and that he was responsible to the questions from the government officials working the case.

Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Jonathan Gasthalter, a spokesman for SAC, said, “Mr. Cohen and SAC are confident that they have acted appropriately and will continue to cooperate with the government’s inquiry.”

The FBI began investigating SAC on an intermittent basis since 2007. The chief investment officer for Offit Capital Advisors, Todd Petzel, said that his company never invested with SAC because the firm has a lack of transparency.

“SAC will tell you that they have incredibly rigorous compliance process,” Petzel said. “I’m sure if this ever comes to court they will demonstrate in court all the training that every one of their portfolio managers goes through.”

Stephen Crimmins is a partner for K&L Gates in Washington. Crimmins said, “Certainly the Wells process and the public disclosure that there is a Wells process with respect to a hedge fund is something that is very challenging for the management of the hedge fund. It’s a period of intense activity. It’s a period that usually doesn’t last that long, so we should expect some more news from SAC.”

SAC Capital Issued Wells Notice by

Tagged: , , ,

Posted by on November 28, 2012. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Public Finance Associate
USA-NY-Rochester

Harter Secrest & Emery LLP seeks an attorney with 2+ years public finance experience (either as a bond lawyer or as a Section 103 tax lawyer). Enthusiasm for client service and initiative are essentia...

Related Posts: