NEW YORK, NY – The Feds are going after the major firm SAC Capital Advisors.
They allege the hedge-fund operator illegally traded inside information from 1999-2010. That pretty much means employees were making trades based on information the public didn’t know about, which is a big “no-no” in the stock world.
If true, that means the company made hundreds of millions of dollars in illegal profits and avoided losses, paid for by investors.
SAC Capital has been formally indicted, making it the biggest corporate prosecution in a decade.
The fallout could be huge.
Remember what Enron did to Houston?
It’s not quite the same, but big corporate take-downs aren’t good for anybody.