Reports: Hedge fund warns clients of SEC probe

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Associated Press

Posted on November 28, 2012 at 11:05 AM

Updated Wednesday, Nov 28 at 12:01 PM

NEW YORK (AP) — Published reports say a hedge fund company is warning its investors that regulators may bring civil charges against the company in an insider trading case.

The Wall Street Journal and The New York Times report that SAC Capital Advisors issued the warning Wednesday in a conference call. The papers cite people familiar with the call in their reports.

The Securities and Exchange Commission declines comment.

A former portfolio manager at SAC, Mathew Martoma, was arrested last week. Prosecutors say he got advance results of tests of an Alzheimer's drug and ditched his shares in related drug companies before the public found out.

Martoma has yet to enter a plea. SAC is owned by Steven A. Cohen, one of the world's richest men. He has not been charged.

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