Justice Dep't charges SAC Capital with Insider Trading. This is HUGE.

[reformist2]

Last edited Fri Jul 26, 2013, 10:22 AM - Edit history (1)

Even though they've filed criminal charges against the corporation and not the top execs (yet), the target is one of the biggest players on Wall Street. Literally thousands of people have passed through SAC Capital's doors in their careers, so this has the potential to be a very, very tangled web indeed. And as the facts come to light, and one accused trader points the finger at several more, and so on, more people may end up being implicated than anyone can imagine.

++++++++++++++++++++++++


By Emily Flitter, Svea Herbst-Bayliss and Jonathan Stempel

NEW YORK (Reuters) - U.S. prosecutors indicted billionaire Steven A. Cohen's hedge fund for insider trading, a rare move that could end the career of one of Wall Street's most successful investors and trigger a fundamental change in how traders try to gain an edge over rivals.

The government accused SAC Capital Advisors LP of presiding over a culture where employees flouted the law and were encouraged to tap their personal networks of contacts for inside information about publicly traded companies.

The result was "insider trading that was substantial, pervasive and on a scale without known precedent in the hedge fund industry," the indictment said.



http://news.yahoo.com/u-charges-sac-capital-hedge-fund-criminal-fraud-140044200.html

[elehhhhna]

1. Until they perpwalk Cohen and charge him HARD it's all theatre

i.e. minor players wil be jailed and SAC will pay a taxdeductable fine that is much much less than their illgotten profits.

Clawback the bonuses for the past 10 years or whatever and JAIL THE MASTERMINDS.

[reformist2]

4. No. You charge the FIRM, and it's much worse for the "industry."

This is why I'm thinking this is huge news - Justice never goes after the firm, they always go after poster boys. Not this time.

[elehhhhna]

5. No! It's not an either-or proposition. You do both.

The firm dismantled, the criminals tried, punished, fined, and barred from the "industry".

[reformist2]

10. NO! LOL. But seriously, I see your point, but we'll agree to disagree.

[elehhhhna]

22. I have worked in securities trading

why do I get the feeling you do, now?

So Cohen should be left alone, huh?

[woo me with science]

12. +1

Fines are figured into the budgets of these scum.

[reformist2]

2. Justice: SAC a "magnet of market cheaters"!

Calling SAC “a veritable magnet of market cheaters,” federal prosecutors announced criminal charges against the hedge fund on Thursday, a rare move against a large company that could threaten its survival. The authorities argued that the firm and its units permitted a “systematic” insider trading scheme to unfold from 1999 to 2010, activity that generated hundreds of millions of dollars in profit for the firm, owned by its founder, the billionaire stock picker Steven A. Cohen.

http://dealbook.nytimes.com/2013/07/25/sac-capital-is-indicted/?_r=0

[freshwest]

6. in order to take this big wigs to task, took a lot of work, crossing the t's and dotting i's.

It looks like they found a really good whistle blower to give them the goods on them.

Wondering if Elizabeth Warren or Richard Cordray were involved in setting this up?

Or just many thousands of hours of investigation?

Little by little, the wheels of justice grind slow but fine. Think of all the harm the crooks have done, the misappropriation of hard-earned wealth for a few.

Good news. Although I make no claim to understand how these things were done to the world, other than the philosophy of the Randians. They need to be put back into the cesspool they slithered out of for good.

[elehhhhna]

7. lol. magnet or factory?

let's not pretend they harbored all the insider/selfdealers, DOJ.

[reformist2]

11. They're not pretending anything, imo - they will dissect this company's culture and by extension all

of Wall Street.

[msongs]

3. more insignificant fines coming up, btw are criminal fines a tax write off lol? nt

[babylonsister]

9. Insignificant, from you, msongs? Say it isn't so!

[Scurrilous]

8. K & R

[kelliekat44]

13. If Martha went to jail...these folks need to go straight to jail for a long time...

They have harmed national security in more ways than one.

[mythology]

14. This doesn't suck

Hopefully the if the company is found guilty, the consequences will be steep enough to be meaningful.

[reformist2]

16. I like that sentiment. We need more actions by this administration that don't suck!

[alfredo]

15. It would be worth watching them stab each other in the back.

[reformist2]

17. Markets pointing downward this morning... are the rats a little nervous?

[Recursion]

18. It's criminal charges

And White has said she won't accept a settlement.

[bemildred]

19. I believe our political leaders are in butt-covering mode. This is good.

They feel their positions are threatened. We will get concessions, renewal dramas, calls for unity. Things will be done for a while. Various small fry will be held somewhat accountable. Modest fines will be imposed.

[reformist2]

21. So they are! Thanks - I corrected my OP.

[malaise]

20. K & R

Time to lock up the real criminals