Steven A. Cohen, summoned to testify before a grand jury about allegations of insider trading at his SAC Capital Advisors, invoked his Fifth Amendment right not to incriminate himself, said two people familiar with the matter.
Bloomberg News reports that it wasn’t clear if Cohen, 57, had invoked his right not to testify before the grand jury or had been excused from appearing after informing prosecutors of using the privilege, said the people, who asked not to be identified because the information is private.
'I wouldn’t have recommended that he goes in to testify given how this looks like the government is trying to build a case around Cohen, rather than investigate one', said Thomas Gorman, a partner at law firm Dorsey & Whitney LLP in Washington. 'It just seems that the government is reaching for a theory to support their beliefs'.
The $15bn firm and its billionaire founder have moved to the center of a U.S. multi-year investigation of insider trading on Wall Street since former portfolio manager Mathew Martoma was charged in November in what prosecutors called the biggest insider-trading scheme in history.
While SAC paid a record $602m to settle a civil case related to Martoma’s trades, the government has shown no sign of ending its scrutiny of the firm. SAC last month told clients it will no longer cooperate unconditionally with the government.
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