After a six-year crackdown on Wall Street's penchant for insider trading, federal prosecutors have filed criminal charges against SAC Capital Advisors, the powerful hedge fund run by YOLO-ing billionaire Steve Cohen. The indictment (below) includes one count of wire fraud and four counts of securities fraud for insider trading violations carried out from 1999 through at least 2010.
On tonight's Daily Show, Jon Stewart examined the little problem that Congress has with indulging in insider trading. You know how it goes, you learn some confidential information in a Senate hearing or something and then use that knowledge for your personal financial gain. Hey, it happens all the time. The only problem is that when the regular non-Congress types try do that it is called insider trading and people go to jail. Oh well.
The growing insider trading scandal involving hedge funds has made its way to the offices of SAC Capital, the firm founded by one of the industry's most powerful figures, Zamboni-loving billionaire Steve Cohen. One of the 14 new defendants charged today, Richard Choo Beng Lee, seems to have started his crime spree when he was employed by SAC. [BI, Reuters]
Another 14 people have been implicated in the growing investigation into insider trading by hedge funds. A number of the people indicted today have ties to Raj Rajaratnam, the founder of Galleon Group who was arrested a couple of weeks ago; all of them, it's safe to say, just had their days ruined. [WSJ]
Galleon Group, the hedge fund founded by Raj Rajaratnam, the man at the center of the insider trading scandal that has rocked Wall Street in recent days, is shutting its doors. (Apparently, investors get a bit nervous when they see the CEO of the hedge fund they've invested in get hauled away in handcuffs and quickly ask for their money back.) Galleon is now reportedly looking to sell off the firm's assets, so if you're looking to pick up a hedge fund on the cheap, you probably should email to Raj as soon as possible. Oh, and yes, we tested out Raj's email address a few minutes ago and it still appears to be operational. So you're all set on that front. Do be sure to let us know how your negotiations go, though. [NYT]