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SAC Capital Indicted in Historical Insider Trading Scheme

The United States attorney’s office in Manhattan and the F.B.I. filed criminal charges last week against SAC Capital for an insider trading scheme that one prosecutor described as "on a scale without known precedent in the history of hedge funds.” So reports The New York Times.

 

SAC, which managed about $15 billion at the beginning of the year but recently lost approximately $5 billion in investor funds as a result of the federal investigation, is said to have purposefully recruited employees with insider knowledge of industrial companies and even used the word “edge” in a marketing document to summarize the fund’s investment strategy.

 

SAC Capital is being represented by Willkie Farr & Gallagher and Paul, Weiss, Rifkind, Wharton & Garrison.

 

Read the full article from The New York Times here.

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