Feds charge hedge fund SAC Capital in New York case

Feds charge hedge fund SAC Capital in New York case

July 25th, 2013 by Associated Press in Local - Breaking News

SAC Capital Partners headquarters is shown in Stamford, Conn.

Photo by Associated Press /Times Free Press.

NEW YORK - A federal prosecutor says the government is not trying to force Steven A. Cohen's hedge fund to close its doors despite an indictment accusing it of insider trading.

Manhattan U.S. Attorney Preet Bharara made the statement when he was asked Thursday at a news conference if SAC Capital Advisors would have to shut down if it is convicted.

The prosecutor says the government isn't seeking to freeze SAC's assets and wants to minimize risk to investors.

Earlier in the day, an indictment was unsealed in federal court charging the company with wire and securities fraud.

Cohen was not named as a defendant. But he was criticized by the government, which said he "enabled and promoted the insider trading scheme."

The company has not commented.