Feds charge hedge fund SAC Capital in NY

Feds in NY bring criminal charges against hedge fund SAC Capital, but not against owner

Associated Press

NEW YORK (AP) -- A huge Connecticut-based hedge fund owned by an embattled billionaire is facing insider-trading charges.

Federal authorities in New York City announced the criminal charges against SAC Capital Advisors on Thursday. SAC is charged with wire fraud and four counts of securities fraud, but owner Steven Cohen is not charged.

The criminal charges come less the week after Cohen was accused of wrongdoing in a civil case brought by the Securities and Exchange Commission. The SEC alleged he failed to stop insider trading at his firm.

An SAC portfolio manager pleaded not guilty last year to charges he earned $9 million 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 Cohen has "acted appropriately at all times."

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