SAC Capital: Firm Criminal Liability, Civil Fines, and the Insulated CEO

31 Pages Posted: 27 Jan 2016

See all articles by Frances Chapman

Frances Chapman

Lakehead University - Faculty of Law; Lakehead University

Marianne M. Jennings

Arizona State University

Lauren Tarasuk

Koskie Minsky LLP

Multiple version iconThere are 2 versions of this paper

Date Written: November 1, 2015

Abstract

SAC Capital Advisors LP (SAC) was once a $12-billion hedge fund with one of Wall Street’s best records for performance. Steven A. Cohen, the owner and namesake of SAC, was the subject of admiring profiles in everything from the New York Times to Vanity Fair. He was once number 36 on Forbes’ list of richest Americans worth an approximated $11 billion, Cohen was called “the king of hedge funds.” Mr. Cohen received attention for his art collection (valued at $1 billion) and his 30-room mansion in Connecticut. However, there was building attention focused on SAC for two very simple reasons: (1) How did the hedge fund outperform every other fund?; and (2) Why were so many current and former SAC traders being indicted, convicted, or entering guilty pleas to insider trading?

Keywords: SAC Capital, Civil Fines, Criminal Liability

Suggested Citation

Chapman, Frances and Jennings, Marianne M. and Tarasuk, Lauren, SAC Capital: Firm Criminal Liability, Civil Fines, and the Insulated CEO (November 1, 2015). Available at SSRN: https://ssrn.com/abstract=2722790 or http://dx.doi.org/10.2139/ssrn.2722790

Frances Chapman (Contact Author)

Lakehead University - Faculty of Law ( email )

955 Oliver Road
Thunder Bay, Ontario P7B 5E1
Canada

Lakehead University ( email )

955 Oliver Road
Thunder Bay, Ontario P7B 5E1
Canada

Marianne M. Jennings

Arizona State University ( email )

Tempe, AZ 85287-3706
United States
480-964-1701 (Phone)

HOME PAGE: http://mariannejennings.com

Lauren Tarasuk

Koskie Minsky LLP ( email )

29 Queen Street West
Suite 900
Toronto, Ontario M5H 3R3
Canada

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