
SAC Capital hit with criminal charges - kghose
http://money.cnn.com/2013/07/25/investing/sac-capital-charges/index.html?hpt=hp_t2
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tomkarlo
One thing that's not being mentioned in these stories: at least at it's
height, SAC trading (reportedly) represented several percentage points of NYSE
/ NASDAQ volume on an average day (which is huge considering their AUM and the
total number of organizations trading). The allegation that they were
essentially an organized insider trading scheme is pretty spectacular given
that scale.

(Correction: 3% of NYSE, 1% of NASDAQ: [http://www.vault.com/company-
profiles/hedge-funds/sac-capita...](http://www.vault.com/company-
profiles/hedge-funds/sac-capital-advisors,-lp.aspx))

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Osiris
From what I've read, even with criminal charges it's unlikely that Steven
Cohen or anyone else involved will serve jail time.

Here in Colorado an electronics recycler sent their recyclables to China
instead of actually recycling and the CEO got 30 months in prison.

I continue to be shocked that bankers and investors get away with fines and a
slap on the wrist. I'm not aware of any that have served prison time since the
recession started.

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PublicEnemy111
raj rajaratnam?

~~~
nonchalance
He is Indian. If you look back at other scandals, usually it's a person
considered in a racial minority (Jerome Kerviel, Joseph Jett) that see jail
time

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dev_jim
1) Raj is Sri Lankan, not Indian. 2) Kerviel is French, grew up and was
educated in France, and worked for a French bank. He isn't a racial minority.
3) Jett was a minority sure and Milken, Boesky, etc. were not minorities. Not
exactly a pattern there.

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jcampbell1
Finally! The whole world has known that SAC is nothing but insider trading
with plausible deniability. SAC even had a platform, where if you submitted a
trading idea, and they used it, then they would pay you a fee. It was a scheme
to harvest insider information but give SAC an excuse.

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ddebernardy
SAC Capital of Deep Capture fame? Why am I not surprised?

[http://www.deepcapture.com/tag/sac-
capital/](http://www.deepcapture.com/tag/sac-capital/)

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PublicEnemy111
Inside information for wall street is what steroids are for baseball players -
everyone uses it.It's the only way to compete and everyone just tries to one-
up each other by using more

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Zigurd
That's the elephant in the room. There are far more hedge funds than there are
rocket science algorithms that could possibly confer a trading advantage.

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chollida1
This is dominating the discussion at our fund right now.

They should have traded commodities, at least with commodities, most forms of
insider trading are legal:)

It will be interesting to see if the fund lives on from this . I find this
unfortunate, Steve Cohen is one of the people in this industry I enjoyed
following.

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CoachRufus87
How many of these guys will actually end up behind bars?

