FOX Business Network (FBN) Senior Correspondent Charlie Gasparino is reporting that senior law enforcement officials are “winding down” their crackdown on insider trading.
SAC Capital is a $14 billion hedge fund, started by Steve Cohen. The firm has been under investigation for insider trading. However, earlier this year the case was deposed by Securities and Exchange Commission investigators.
On the federal crackdown on insider trading:
“Senior law enforcement sources are telling the FOX Business Network that the crackdown, as we know right now . . . Essentially, it’s winding down Were not going to see the level of cases. There may be a few left. A lot of people talk about one big fish left. We don’t know who that is. We do know that this thing that’s been running pretty much non-stop since 2009 when Raj Rataranam was arrested and continued with many others . . .. We’ are being told that the likelihood that kind of activity is rapidly coming to an end. But again, that doesn’t mean zero. That means basically, at this point, that this thing is a winding down. We should point out that though, eve thought that this is going on, that Steve Cohen of SAC Capital, someone who is in the news a lot, a guy a lot of people have been pointing fingers as possibly engaging in some of these activities. He has never been charged. He denies the charges, He is still an obsession by law enforcement by sources.”
On whether Steve Cohen’s phone specifically was tapped by federal agents:
“His people called me up and asked me to make a distinction whether they got wire tap authority to tap his phone or whether he was dragged in as a side party to another phone that was being tapped. Sources tell FBN that Federal Authorities did receive specific authority to tap Steve Cohen’s phone. The evidence they accumulated was inconclusive, but the feds were interested specifically in him.”