SAC Capital Advisors LP founder Steven Cohen told U.S. regulators a decision to sell shares at the heart of a $276 million dollar insider-trading case going to trial next month was based on advice from outside his firm.
When Rengan Rajaratnam started Sedna Capital Management LLC, he named the hedge fund after a newly discovered dwarf planet on the edge of the solar system, reflecting his focus on small-cap businesses unnoticed on Wall Street.
Secret recordings of Rengan Rajaratnam talking with his brother, hedge fund billionaire Raj Rajaratnam, prove the two engaged in an insider-trading scheme, prosecutors said at the start of a trial in New York.
Ex-Galleon Group LLC trader Rengan Rajaratnam’s jury was picked for an the insider-trading case in which the U.S. says he used illegal tips provided by his older brother, imprisoned billionaire fund manager Raj Rajaratnam.
In the end, billionaire Steven Cohen, one of the most successful hedge-fund managers of his generation, could end up getting banned from the business he dominated for an error of omission, not commission.
U.S. investigators have subpoenaed a 2011 deposition of SAC Capital Advisors LP founder Steven Cohen, whose sworn statements on insider-trading compliance may hurt him as he tries to persuade regulators not to file a lawsuit with the potential to shut his $14 billion firm.