Steven A. Cohen, the embattled hedge fund manager, has received a subpoena requiring his testimony before a grand jury on the government's insider trading investigation into his private equity firm, SAC Capital Advisors. This signals another phase into the long standing inquiry into the allegations brought to court.
Aside from Cohen, other SAC executives were named in the subpoena as part of a greater investigation from criminal justice authorities. There were also written requests for information and documentation on the matter.
These subpoenas also show that the Federal Bureau of Investigation is intensifying its case building efforts not just to the hedge fund's leadership but also the hedge fund itself. The testimony and documents obtained would be reviewed by the jury which would then decide on whether to deliver indictments.
While initially SAC Capital cooperated with the investigation, it appears that it is dragging its feet on the latest ones until last Friday, SAC told its investors it would stop cooperating with the investigation. In a letter, it said, "While we have in the past told you of our cooperation with the government investigation, our cooperation is no longer unconditonal."
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