Lawsuit against SAC delayed

American courtroom

Bloomberg reports that the exchange of evidence in the government’s forfeiture lawsuit against SAC Capital Advisors was delayed by a judge until 6th January while the U.S. pursues insider trading prosecutions tied to the hedge fund.

Bloomberg reports that the exchange of evidence in the government’s forfeiture lawsuit against SAC Capital Advisors was delayed by a judge until 6th January while the U.S. pursues insider trading prosecutions tied to the hedge fund.

A postponement of the case is warranted until insider trading cases against the company, as well as SAC fund manager Michael Steinberg and former SAC portfolio manager Mathew Martoma, are concluded, Assistant U.S. Attorney Micah Smith told U.S. District Judge Richard Sullivan today in Manhattan federal court. Steinberg and Martoma face separate trials in November.

A federal grand jury in July indicted the Stamford, Connecticut-based hedge fund owned by Steven A. Cohen. The government also filed a related money laundering lawsuit seeking forfeiture of ill-gotten gains. The delay of civil cases while related prosecutions proceed is a standard government request.

“Our concern is the defendants would request to depose government witnesses who may not yet have testified at trial,” Smith said, adding that the stay could be in place until after the Martoma and Steinberg trials are concluded.

To access the complete Bloomberg article hit the link below

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image: © Clyde Robinson

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