SAC still on hook in insider trading probe: Source

Money On Hook

The probe into possible insider trading continues with U.S. authorities looking at a number of hedge funds, including at least one individual at SAC Capital, a source familiar with the matter tells CNBC.

This comes on the heels of the conviction of a former SAC Capital portfolio manager, Mathew Martoma, who was found guilty on all charges of insider trading. Martoma is the eighth current or former SAC employee who has been convicted or pleaded guilty to insider trading charges since 2009, the year Preet Bharara took office as the U.S. attorney for the Southern District of Manhattan. 

Prosecutors have a spotless track record for insider trading convictions under Bharara's leadership, successfully convicting 79 individuals.

During Martoma's trial, it was revealed that the founder or SAC Capital, Steve Cohen , was the government's main target in the insider trading investigation. The prosecution's key witness, Dr. Sidney Gilman, testified that when he was first approached by the FBI in September 2011, the agents interviewing him said he "was only a grain of sand, as is Mr. Martoma," and that "they were really after a man named Steven A. Cohen".

(Read more: SAC's Martoma found guilty of insider trading )

Numerous high-ranking SAC employees also testified in the trial, including the general counsel, Peter Nussbaum and the global head of execution, Phillip Villhauer, who took the stand for the defense.

Both shined light on how things were run within the hedge fund, but Villhauer's testimony suggested that Cohen had ultimate discretion over all large trading decisions within the firm's accounts. SAC's sale of millions of shares of Elan and Wyeth stock in question during Martoma's trial, were "executed quietly and efficiently" on Cohen's orders, Villhauer testified.

SAC Capital pleaded guilty in November to insider trading charges and paid the government a record $1.8 billion to settle the criminal and civil charges. The settlement is still pending a federal judge's decision.

(Read more: Milken to Madoff: Villains who changed the world )

Cohen has not been charged criminally but faces a separate civil suit from the SEC that seeks to bar him from the financial services industry for failure to supervise. The suit has been stayed until a decision is made on SAC's record settlement.

Martoma faces a maximum jail time of 45-years for his convictions. He will be sentenced at a later date.

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