October 14, 2019

SAC Capital Insider Trading Rumors Sticking Around

SAC Capital Insider Trading Rumors are Sticking Around

SAC Capital Advisors of Stamford, CT continues to be probed on insider trading concerns.

SAC Capital insider trading rumors sticking around, write Jenny Strasburg and Jean Eaglesham in The Wall Street Journal. The hedge fund has been subpoenaed regarding insider trading of former employees and connections over the past year.

Wall Street regulators expressed mounting concern about SAC Capital Advisors’ trading over a nine-year period, detailing in dozens of confidential reports suspicions that the hedge-fund firm might have profited from insider information.

The reports, submitted by the regulators to the Securities and Exchange Commission, don’t allege wrongdoing by SAC, one of the world’s best-known hedge-funds, which is overseen by billionaire founder Steven A. Cohen.

But investigators at the Financial Industry Regulatory Authority, a self-regulatory body for securities firms, described SAC’s history of well-timed trades as unusually prescient and particularly profitable, according to more than 320 pages of documents.

Investors have to be careful when dealing with insider information. The smartest people think they won’t get caught. SAC is known for having some of the best information in the industry and they pay heavy fees to get that edge. The difference between what’s legal and what crosses the line is what’s keeping SAC Capital insider trading rumors sticking around.

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