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Four Former SAC Capital Employees Charged in Insider Trading Crackdown

twacowfca

By twacowfca
in Fairfax Financial

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Parsad Grand Master

Parsad

Posted
Posted

Most definitely.  They are working these guys for any information they can provide them to get SAC and Cohen.  They are just building the case and it will take time.  You can't go after him without a solid case with full corroborating evidence.  He'll just drag it through court for ten years...he has the money.  Is it just coincidence, that virtually every arrest and charge over the last year and a half, has a former connection to SAC?  Cheers!

Uccmal Newbie

Uccmal

Posted
Posted

Now I dont want to be seen to be promoting rumours but if I were an investor in an SAC fund I would be getting very nervous about now.  This is the first time I have seen people arrested who were working at SAC while the alleged fraud was occurring.  And they are pleading out for some kind of a deal.  Now isn't a company resposible to supervise its workers?  At the very least it speaks to a lack of internal controls - at the very least - which should net a settlement in the hundreds of millions - at the very least. 

 

Cohen's legal fees and fines could get to be enough to break him.  He is only a young man with lots of time to get wiped out completely. 

 

We thought we had a mouse in the house this winter.  I caught it and since then I have caught 12 more.....

Parsad Grand Master

Parsad

Posted
Posted

We thought we had a mouse in the house this winter.  I caught it and since then I have caught 12 more.....

 

Al, what are you saying then?  That you expect to catch one really big mouse at the end, after you've arranged plea bargains with the other 12!  ;D  And how much cheese did that take?  Cheers!

Uccmal Newbie

Uccmal

Posted
Posted

Peanut Butter....

 

I heard it works with former SAC employees. 

 

Now imagine that you worked closely with one of these broken guys at SAC.  Your whole networth is tied up with SAC, and its about to implode along with your career and your reputation.  That would really suck especially if you didn't do anything wrong.

 

I can go further with the rodent scenario: 

 

Soon they will be like rats trying to get off a sinking ship...

 

benhacker Newbie

benhacker

Posted
Posted
Yup!  I'm actually surprised that they aren't getting major redemption requests at this point.  Cheers!

 

Given the fee structure, it has to be 99% manager / owner money in the fund by this time.  There can't be much outside money.

 

Ben

Uccmal Newbie

Uccmal

Posted
Posted

You have a point Ben.  Probably very little external money left.

 

From Niall Ferguson:  If Buffett has used the 2 and 20 formula he would have kept 57 million of the 62 million of profits he made in the first 42 years of his career as an independent money manager.  This is what LTCM did as well. 

twacowfca Rookie

twacowfca

Posted
  • Author
Posted

You have a point Ben.  Probably very little external money left.

 

From Niall Ferguson:  If Buffett has used the 2 and 20 formula he would have kept 57 million of the 62 million of profits he made in the first 42 years of his career as an independent money manager.  This is what LTCM did as well.   

 

Would the general partner's profits in the hedge fund have been sheltered to some degree if not taken out?

Guest ValueCarl

Guest ValueCarl

Posted
Posted

Level Global hedge fund shuts down; Goldman already tapping into valuable NY State run assets. Did this Kinnucan character find an expensive lawyer through his "alerted" connections, or via the benevolence of sympathetic contributors that media outlets like cnbc were attempting to garner in their prior pleas tied to his impoverished state as a result of transferring his assets to close relatives before he lost it all in retainers, and suffers in The Big House for his iniquity?  

 

http://finance.yahoo.com/news/Raided-hedge-fund-Level-rb-1484559918.html;_ylt=AoTJuTSallqYPSw5me7mF5y7YWsA;_ylu=X3oDMTE1NGQ2NjEwBHBvcwM4BHNlYwN0b3BTdG9yaWVzBHNsawNyYWlkZWRoZWRnZWY-?x=0&sec=topStories&pos=4&asset=&ccode=  

 

 

 

Level Global was co-founded by Ganek, who is also well known in art collecting circles, and Anthony Chiasson in 2003. Chiasson, who is Level Global's director of research, did not sign the letter on Friday. Both were alumni of Steven Cohen's $12 billion hedge fund SAC Capital Advisors.

 

On Tuesday, two former SAC Capital employees were charged by federal prosecutors with engaging in insider trading while working at Cohen's fund. One of those former employees, Noah Freeman, is cooperating with the investigation. A SAC Capital spokesman has called the alleged actions of its former employees "outrageous."

 

Despite the high-profile raid by the Federal Bureau of Investigation in November, no Level Global employees or former employees have been charged or formally linked to the probe.

 

But Chiasson and two other Level Global employees were among the recipients of an email sent by independent technology researcher John Kinnucan, after two FBI agents had visited his home asking him to cooperate with the investigation. Kinnucan refused the FBI's request and sent an e-mail to his clients and other Wall Street contacts alerting them to the probe.

A Level Global spokesman declined to comment beyond the contents of the letter. News of the redemptions was first reported by industry blog Dealbreaker.com.

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