Published March 18, 2013
BOSTON – Steven A. Cohen's SAC Capital Advisors cautioned investors on Monday that last week's settlement with U.S. financial regulators over insider trading charges, does not end the government's scrutiny of the $15 billion hedge fund.
SAC Capital agreed to pay a record $616 million fine to settle two lawsuits, the largest ever U.S. insider trading settlement.
"I don't want to leave you with the thought that this means everything is cleared up," SAC President Tom Conheeney said on a conference call, according to one person familiar with the call.
The government's charges had sufficiently unnerved investors that they asked to have $1.68 billion returned and Blackstone Group, a key investor with some $550 million in the fund, negotiated more favorable liquidity conditions last month.
Cohen, one of the hedge fund industry's most successful traders, did not speak on the call. The firm reiterated earlier statements that the government's investigation into improper trading is continuing.
The Wall Street Journal first reported that the call took place.
The government said on Friday that the settlement does not preclude it from bringing additional charges in the future and the U.S. Department of Justice and the Federal Bureau of Investigation are still investigating SAC's trading of other stocks.
In agreeing to settle, neither SAC Capital nor its subsidiaries admitted or denied wrongdoing. SAC Capital's management company and not outside investors will pay the fines, a person familiar with the hedge fund said on Friday.
(Reporting by Svea Herbst-Bayliss; Editing by Edwina Gibbs)