FOX Business Network’s (FBN) Senior Correspondent Charlie Gasparino reports that insiders from SAC Capital say that founder Steve Cohen will not be “charged criminally” and that he will “survive this” insider trading probe. Gasparino discussed further that “insiders say the fund will likely end up paying a large fine” and that’s how this investigation “might end.” One insider tells Gasparino, “things are going better than the press would have you believe.”
Excerpts from the report are below.
On whether SAC founder Steve Cohen will be charged criminally with insider trading:
“I’ve been talking to people who deal directly with some of the senior portfolio managers in there and this is what they are telling me. They are saying that SAC -and these are from inside the company and they are telling me some investors – Steve Cohen the head of the firm the guy that received the subpoena last week the guy may face RICO charges as we’ve been reporting, will survive this. He will not – that’s the feeling internally, be charged criminally. Insiders say the fund will likely end up paying a large fine – that’s how this thing might end at least according to the insiders that when all said and done they will end the Justice Department’s probe. It’s from the Manhattan U.S. Attorney’s Office, it’s from Preet Bharara’s office they will end it by paying a large fine with Cohen not going to jail at least that is what the insiders are saying. What’s interesting is that one insider told FBN things are going better than the press would have you believe.”