Steven A. Cohen, chairman and CEO of SAC Capital Advisors LP was summoned to testify before a grand jury. This was about alleged insider trading in his company, SAC Capital. However, Cohen invoked his right to the Fifth Amendment stating not to incriminate himself as stated by two people familiar with the matter.
According to the same source, it was not clear if Cohen had invoked his right not to testify before the grand jury or was excused not to appear in the trial. This was after informing prosecutors of his privilege to the Fifth Amendment said sources. The sources asked not to be identified as the information was to be held private.
The US$15 billion hedge fund and its billionaire founder have moved to the center of a US multi-year investigation about insider trading on Wall Street. This was since the company's former portfolio manager, Matthew Martoma was charged in November. Prosecutors said that it was the biggest insider trading scheme listed in history. SAC paid US$602 million to settle the civil case relating to Martoma's trades.
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