Lendrum Law Firm, APC
Financial Fraud and Investment Loss Recovery Attorneys
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Not guilty plea entered in SAC Capital insider trading case

Understanding the ins and outs of the stock trading industry can tend to be a very tall mountain to climb. San Diego investors who be simply looking to put their money to work for their future security can easily find they've become victims of an unscrupulous broker, advisor or investment company. The resulting losses can be devastating.

Mounting a legal fight against such investment loss not only involves knowledge of the law that most people just don't have, but it can also be daunting and draining. To meet the demands of such a battle and to protect the rights of victims takes experienced legal counsel.

There has been no shortage of cases of alleged investment company fraud. One need only look to the Bernie Madoff scandal for evidence.

Today, the organization that is in the limelight is SAC Capital Advisors. The $14 billion hedge fund firm entered a plea of not guilty in New York federal court to four counts of securities fraud and one count of wire fraud.

According to prosecutors, the company fostered a practice of having employees tap personal contacts for insider information and then used that information to glean hundreds of millions of dollars from at least 20 publicly traded companies. As one prosecutor puts it, the culture of the company led to SAC becoming a magnet for cheaters.

Not named in the indictment or charged criminally is SAC founder Steven A. Cohen. Federal regulators have accused him in civil court of not acting to prevent the alleged insider trades. If successful, it would bar him from investment fund management.

In addition to the charges entered today against the company, four former SAC employees have been charged with insider trading. Two have pleaded guilty. One SAC affiliate is also slated to pay more than $600 million to deal with Securities and Exchange Commission charges.

Source: UTSanDiego.com, "SAC Capital Charged with Insider Trading," Bloomberg News and The Associated Press, July 26, 2013


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