SAC Not Out of the Woods Yet

You'd think pleading guilty to insider trading, paying a $1.2 billion fine, and being barred from managing outside capital would clear the decks. But if you're SAC Capital, you'd be wrong. The Justice Dept is proceeding in its investigation in the hopes of even more charges - charges which Steve Cohen and company have no immunity against. To wit, an unnamed witness with firsthand knowledge of insider trading that may involve Cohen himself has rolled on his former employer.

Indeed, according to The New York Times, prosecutors and the Federal Bureau of Investigation have won another cooperating witness against SAC. That person, who has not been identified because his or her guilty plea has not been announced, is helping with the investigation of SAC's trading in Gymboree shares-a name that has not previously come up in the SAC probe.
What's more, authorities believe that the Gymboree trades may have involved Cohen himself. To date, Cohen has been directly linked to only one case of alleged insider-trading at his firm, and prosecutors were unable to come up with enough evidence to charge him personally.

If I'm Steve Cohen, I'm checking out properties in the Caribbean and distributing my fortune among the various rogue states that refuse to play ball with the US. Seriously, it's game over. The Justice Department isn't going to quit until Cohen and Raj are making a market in dinner rolls in the prison cafeteria (at least his alliance with Guy Fieri will give him the upper hand in that market).

I almost feel bad for the guy. Almost.

Any way you slice it, it's an ugly deal for anyone who ever came in contact with SAC on a professional or career basis. It's amazing to think that an unprecedented fine and guilty plea aren't enough to go back to business as usual. Maybe the feds really have turned over a new leaf and fuckery will no longer be tolerated.

How the hell is that supposed to work?

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