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HOPE YOU LIKE CLUB FED SAC to Be Hit With Indictment Mark Lennihan/AP

SAC to Be Hit With Indictment

Those trips to the Hamptons must be pretty tense for SAC Capitol Advisors. Federal authorities are reportedly ready to file a criminal indictment against Steven Cohen’s hedge fund for insider trading in the coming days, according to the New York Times. Cohen himself is not likely to be charged, sources said. But still, the charges will cripple SAC, which has been under investigation for a decade. The Securities and Exchange Commission filed civil action last week accusing Cohen of failing to supervise employees accused of insider trading, Mathew Martoma and Michael C. Steinberg, who have now been charged with criminal wrongdoing. Criminal charges against companies is fairly rare—and when the Justice Department filed charges against Enron’s accounting firm Arthur Andersen, the firm was forced to close, and 28,000 people lost their jobs.

July 24, 2013 7:34 AM