SAC’s Cohen Said to Be Deposed in SEC Trading Probe

Bloomberg News – By Joshua Gallu and Saijel Kishan – June 21, 2012

Reuters/Eric Thayer

Steven A. Cohen, the billionaire founder of hedge fund SAC Capital Advisors LP, is facing renewed scrutiny from U.S. regulators over whether he illegally bought and sold stocks using inside information, two people familiar with the matter said.

Cohen, 56, was recently deposed by Securities and Exchange Commission investigators in New York about trades made close to news such as mergers and earnings that generated profits for his fund, said one of the people, who asked not to be identified because the investigation isn’t public. Neither Cohen nor Stamford, Connecticut-based SAC Capital, which oversees about $14 billion, has been accused of wrongdoing.

SAC Capital has repeatedly landed in the cross hairs of a federal crackdown on insider trading on Wall Street that burst into public view in October 2009 with the arrest of Raj Rajaratnam, founder of Galleon Group LLC. U.S. criminal prosecutors said last year they were looking at trading accounts at SAC Capital, including one run by Cohen that consists of the best ideas from the firm’s portfolio managers and analysts. Also last year, two former traders pleaded guilty to engaging in criminal securities fraud while at SAC Capital.

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