US federal authorities in New York City confirmed the launching of criminal charges against Connecticut-based SAC Capital Advisors (SAC).
SAC has been charged with wire fraud and four counts of securities fraud.
It is understood four individuals have been charged over the allegations but owner Steven Cohen is not one of them.
The criminal charges come the week after Mr Cohen was accused of wrongdoing in a civil case brought by the Securities and Exchange Commission (SEC).
The SEC alleged that he failed to stop insider trading at his firm.
It has been alleged that the trades centred on more than 20 companies.
Founder Steven Cohen has denied wrongdoing by his firm SAC is believed to have had up to $15bn (£9.8bn) in assets.
Prosecutors are seeking forfeiture of what they said were illegal profits made from the insider trading, according to court documents.
The lawsuit was filed in federal court in New York on the same day as criminal charges were unveiled against the firm founded by Mr Cohen.
They have accused SAC of making "hundreds of millions of dollars in illegal profits".
It has also called for SAC to pay penalties for money laundering.
A spokesman for SAC Capital did not immediately respond to a request for comment.
An SAC portfolio manager pleaded not guilty last year to charges he earned $9m (£5.9bn) in bonuses after persuading a medical professor to leak secret data from an Alzheimer's disease trial.
An SAC Capital spokesman said last week that Mr Cohen has "acted appropriately at all times".
(function(d){ var js, ref = d.getElementsByTagName('script')[0]; js = d.createElement('script'); js.id = 'outbrainjs'; js.async = true; js.src = "//widgets.outbrain.com/outbrain.js"; ref.parentNode.insertBefore(js, ref); }(document));View the original article here
This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.
No comments:
Post a Comment