The Securities and Exchange Commission is preparing to file a civil lawsuit against the $14 billion Connecticut hedge fund run by Steven A. Cohen, a legend in the industry whose business has attracted the government’s scrutiny for years.
In a call with investors Wednesday morning, SAC Capital Advisors revealed that it had received a notice from the SEC detailing charges that the government is preparing to file against the firm, according to a person familiar with the call.
It’s unclear when the firm received the notice. But the call came about a week after a former SAC portfolio manager — Mathew Martoma — was charged with running the most lucrative insider-trading scheme ever while working with Cohen. In separate cases, federal prosecutors and the SEC accused Martoma of getting secret tips from a neurologist about the results of a clinical trial involving an Alzheimer’s drug, enabling his hedge fund and others to make more than $276 million in illegal profits or avoided losses.