Steven Cohen is the founder of SAC Capital Advisors LP. According to reports, he will remain under federal investigation. This was even if prosecutors missed a late July deadline for charging him the biggest insider trading case in history. This was according to source that was familiar with the probe.
Last Week, the Wall Street Journal reported that it might be possible for Cohen to not face charges after the July 2008 trades triggered by former portfolio manager Matthew Martoma. The latter accused of recommending SAC sell shares of two drug companies. The recommendation of the deal was based on an illegal inside tip he received.
The allegations brought charges pressed against Cohen for a series of trades sparked by Martoma's tip. The said tip was to expire by July 29. The Wall Street Journal said that there were no sufficient evidences against Cohen to charge him in that matter without identifying sources.
According to Martoma's indictment, the transactions he conducted were able to net SAC Capital Advisors a total of US$276 million. Cohen's firm manages a total of US$15 billion.
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