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
  • Recent Changes in the Regulatory Landscape 2011 marked a major shift in the regulatory environment, as the SEC adopted rules for implementing the Dodd-Frank Act.  Many changes to Investment Advisers Act were authorized by Title IV of the Dodd-Frank Act.  
  • Conducting Due Diligence of Sub-Advisors and Third-Party Advisors Engaging in due-diligence of sub-advisors isn’t just a recommended best practice— it is part of the fiduciary obligation to a client. An RIA should be extremely reluctant to enter a relationship with a sub-advisor who claims the firm’s strategy is proprietary.

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 This material may not be published, broadcast, rewritten, or redistributed.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.