SAC Capital, which is facing federal insider-trading charges and a money-laundering lawsuit, was granted court approval to continue operating until the cases are resolved.
Bloomberg News reports that U.S. District Judge Richard Sullivan in Manhattan, who’s presiding over the money-laundering case, signed an order on August 9 to protect the fund’s legitimate operations from being impeded by the government while the case is pending.
The indictment of SAC, the New York hedge fund owned by Steven. A. Cohen, and the related laundering case were announced July 25 by Manhattan U.S. Attorney Preet Bharara, who called SAC 'a veritable magnet for market cheaters.'
The plan covers about $6bn of assets not overseen for clients or employees of SAC, according to a person with knowledge of the matter, who asked not to be identified because the information is private. That means the firm must maintain about $5bn of assets. SAC managed about $14bn earlier this year, including $9bn for Cohen and employees.
Two from SAC charged with insider trading, former fund manager Mathew Martoma and Michael Steinberg, a fund manager at the firm’s Sigma Capital unit, are scheduled for separate trials in November.
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image: © Clyde Robinson