Target: Arlo Devlin Brown, Lead Prosecutor, Office of the U.S. Attorney
Goal: Praise the arraignment of a hedge fund suspected of conducting a vast insider trading scheme
Recently, SAC Capital Advisors, a hedge fund, was arraigned on several criminal insider trading charges. SAC is the first large American company to face an indictment in more than a decade. In the past, federal prosecutors have won multiple criminal convictions against employees of the hedge fund. Some have said that the company is a “veritable magnet of market cheaters.”
Started by billionaire Steven A. Cohen in 1992, SAC now has more than 1,000 employees working in eight cities around the globe. Despite charging investors some of the highest fees, Cohen’s firm has one of the best performance records in the gigantic hedge fund industry. Currently, SAC is intent on fighting the charges. A firm spokesman stated that SAC “has never encouraged, promoted or tolerated insider trading.”
Prosecutors argue that SAC and its subsidiaries permitted a “systematic insider trading scheme to unfold” from 1999 to 2010. This activity supposedly generated “hundreds of millions of dollars” for the firm (that prosecutors intend to take away). By law, the government can attribute the illegal activities of employees to a company “as long as the employees acted on behalf of and for the benefit of the company when breaking the law. So far, six former SAC traders have pleaded guilty.
Soon, the government will turn over to SAC a large proportion of its collection of e-mails and wiretaps. The next hearing will be held on Sept. 24, 2013. By signing this petition, you are praising the arraignment of SAC Capital Advisors. Although the firm is innocent until proven guilty, the evidence seems to point to a corporate culture of illegal operations.
Dear Mr. Brown,
You are leading a group of several prosecutors from the U.S. Attorney’s office in an insider trading case against SAC Capital Advisors. Your history of helping to build many of the office’s financial fraud cases is encouraging.
As you are well aware, the firm’s illicit gains from insider trading could potentially reach into the billions of dollars. Evidence against the firm is substantial; hopefully, the prosecution will be able to present a strong case against the hedge fund. Since this is the first large American company to face an indictment in more than a decade, this case could also serve the secondary purpose of presenting to citizens evidence of what is really going on behind closed doors in the financial sector.
It is promising that the federal government has made the decision to pursue this course of action. I praise the arraignment of SAC Capital Advisors. Although the firm is innocent until proven guilty, the evidence seems to point to a corporate culture of illegal operations.
[Your Name Here]
Photo Credit: David Paul Ohmer via Flickr