By Kyle Colona, Writer for CompliancEX News
Combined News sources reported on November 23, 2010 that the massive joint insider-trade probe by the SEC and the FBI is widening.
SAC Capital Advisors is the latest fund to be subpoenaed by federal investigators. The hedge fund giant run by Steven A. Cohen notified investors in a letter on Tuesday that the fund received an “extraordinarily broad” subpoena.
This comes on the heels of the raids by the FBI at Level Global Investors LP and Diamondback Capital Management LLC on Tuesday. Both funds are controlled by former SAC traders. No one at the firms searched by federal agents on Monday or handed subpoenas has been accused of wrongdoing nor has Mr. Cohen or SAC has been accused of wrongdoing. The third firm raided on Monday, Loch Capital Management, is a Boston hedge fund focused on technology investments.
In its letter to investors, SAC defended itself against alleged insider-trading violations but told investors they would not publicly comment on the investigation further.
Kyle Colona is a contributing writer to ComplianceEX and a NY based freelance writer.
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