July 23 Federal prosecutors are preparing to
announce criminal charges as early as this week against Steven
A. Cohen's hedge fund SAC Capital Advisors LP, which is being
probed for alleged insider trading, the Wall Street Journal
said, citing people familiar with the matter.
The action is anticipated barring any last-minute pact with
SAC or other reversal of government strategy, the Journal cited
the people as saying.
Prosecutors, however, are not planning to file charges
against Cohen personally, the people told the paper. ()
Cohen is already fighting a noncriminal proceeding brought
by the Securities and Exchange Commission earlier this month
accusing him of ignoring "red flags of potentially unlawful
conduct." The SEC contends that two SAC portfolio managers
elicited inside information on Dell Inc in 2008.
Reuters earlier reported that Cohen's legal team claims the
hedge fund titan was simply too busy to notice some of his
employees may have been using inside information to make trades
in shares of the computer company.
A spokesman for SAC did not have an immediate comment on the
Journal report when contacted by Reuters. A spokesman at the
Federal Bureau of Investigation declined to comment.