Feds Bust Insider Trading Scheme 'Without Precedent'
SAC Capital Advisers insider trading was 'on a scale without known precedent'
By Kevin Spak, Newser User
Posted Jul 25, 2013 11:40 AM CDT
In this Thursday, Feb. 10, 2011, photo, S.A.C. Capital Partners headquarters is shown, in Stamford, Conn.   (AP Photo/Mark Lennihan)

(Newser) – Federal prosecutors have slapped SAC Capital Advisors with criminal charges in an alleged insider trading scheme "on a scale without known precedent." The hedge fund has allegedly been making hundreds of millions off of illicit info for a decade, the Wall Street Journal reports. The charges also name several individual traders; former portfolio manager Richard Lee, for instance, is accused of conspiracy to commit securities fraud.

SAC founder Steven A. Cohen isn't in the criminal complaint, although the SEC is trying to get him banned from managing client money for life in a separate civil suit. The government is also using a civil suit to attempt to seize all of SAC's assets. "The message that's coming loud and clear from the government is they're not going to tolerate insider trading on Wall Street," one former US attorney observes. "They don't care how powerful the target is." Read the indictment here.

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Showing 3 of 30 comments
Jul 27, 2013 8:02 AM CDT
Just the tip of the iceberg?
Jul 26, 2013 8:42 AM CDT
How about busting the crooked bankers and CEOs who are directly responsible for the '08 recession? When are you going to arrest those POS crooks?
Jul 25, 2013 8:37 PM CDT
There should be WAY more of these busts. Too little, too late.