SAC Capital Advisors, the hedge-fund firm that Steven A. Cohen transformed into a family office following a record insider-trading settlement, lost a bid to dismiss an investor class action over the wrongdoing.
Former SAC Capital Advisors LP manager Mathew Martoma, who faces trial in November on insider trading charges tied to illicit tips on an Alzheimer’s drug, got some of his information from New Jersey physician Joel Ross, two people familiar with the matter said.
Jon Horvath, a former analyst at SAC Capital Advisors LP who pleaded guilty to passing illegal tips to one manager at the hedge fund, also funneled inside information to another supervisor, U.S. regulators said in a lawsuit that may help accelerate the massive criminal investigation of SAC and its founder, Steven A. Cohen.
The federal investigation of insider trading by SAC Capital Advisors LP and its founder, Steven A. Cohen, has been hampered by a lack of extensive e-mail evidence. One reason: During the period of time at the heart of the probe, July 2008, SAC automatically deleted its e-mails.
The insider-trading indictment of ex-SAC Capital Advisors LP portfolio manager Mathew Martoma sets in motion a criminal trial process that puts new pressure on him to cooperate with the government’s investigation of the hedge- fund firm founded by billionaire Steven Cohen.
Two days before Dell Inc. was set to report second-quarter 2008 earnings, Jon Horvath, a technology analyst at SAC Capital Advisors LP, e-mailed his boss Michael Steinberg and another portfolio manager to warn that the computer maker would miss earnings estimates.
If the past is any guide, the U.S. Securities and Exchange Commission will probably hold off on its threat to sue SAC Capital Advisors LP until prosecutors determine whether they can build a criminal insider-trading case against the hedge fund’s founder, Steven A. Cohen.
Sid Gilman, the University of Michigan neurologist linked to an insider trading case, has resigned his university position.