SAC Capital Advisors Pleads Not Guilty to Fraud

Steve Cohen's hedge fund firm enters plea in Manhattan federal court following indictment for wire and securities fraud.

More On Legal & Compliance

from The Advisor's Professional Library
  • Regulatory Oversight of Investment Advisors Although the regulatory environment is in a state of flux, it is imperative that RIAs adhere to their compliance obligations. To ensure compliance, RIAs and IARs must fully understand what those obligations are.
  • Do’s and Don’ts of Advisory Contracts In preparation for a compliance exam, securities regulators typically will ask to see copies of an RIAs advisory agreements. An RIA must be able to produce requested contracts and the contracts must comply with applicable SEC or state rules.

NEW YORK (AP) — A not guilty plea has been entered on behalf of a large hedge fund charged in a criminal indictment with letting insider trading occur over a 10-year period.

The plea was entered Friday morning in Manhattan federal court by Peter Nussbaum, longtime general counsel for SAC Capital Advisors. It happened a day after the company was charged with wire and securities fraud.

A prosecutor says the evidence is "voluminous."

Stamford, Conn.-based SAC said in a statement after the charges were announced that it will continue normal operations.

It said it "has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously."

The company is owned by embattled billionaire Steven A. Cohen. He has not been charged.

---

Read more about the charges brought against SAC Capital Advisors.

Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Reprints Discuss this story
This is where the comments go.