SAC Capital Advisors and its founder, Steven A. Cohen, would like to put the embarrassing past few months behind them—in the name of a settlement.
Over the summer, the Securities and Exchange Commission (SEC) was busy building their case against the hedge fund and its founder. After years of investigations against Cohen, the SEC finally charged him in late July, accusing the billionaire of ignoring “red flags” that indicated two of his traders were using illegal tips. The alleged insider trading occurred in 2008 by Matthew Martoma and Michael Steinberg, former SAC portfolio managers. Both men face their own criminal and civil charges in November, and they have both refused to settle or accuse Cohen with misconduct.