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Hedge Fund Pleads Not Guilty To Fraud Charges

General Council for SAC Capital Advisors LP, Peter Nussbaum exits Manhattan federal court, Friday, July 26, 2013, in New York. (Louis Lanzano/AP)
General Council for SAC Capital Advisors LP, Peter Nussbaum exits Manhattan federal court, Friday, July 26, 2013, in New York. (Louis Lanzano/AP)

Prosecutors said a large volume of evidence including electronic messages, court-ordered wiretaps and consensual recordings is stacked against a Connecticut-based hedge fund that pleaded not guilty Friday to criminal charges accusing it of letting insider trading flourish for more than a decade.

Assistant U.S. Attorney Antonia Apps told a federal judge in Manhattan that investigators had “voluminous” evidence against SAC Capital Advisors, a Stamford, Conn.-based firm owned by billionaire Steven A. Cohen.

She said the evidence included “electronic messages, instant messages, court-ordered wiretaps and consensual recordings.”

The plea was entered by Peter Nussbaum, SAC’s longtime general counsel, and came a day after the company was charged with wire and securities fraud, accused of making hundreds of millions of dollars illegally. Federal prosecutors described a culture at SAC that permitted, if not encouraged, insider trading.

Prosecutors said the victims were large companies whose inside information was stolen and traded upon. The next hearing was set for Sept. 24.

Guest

  • Marty Schenker, executive editor at Bloomberg. He tweets @mschenker.

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