Three at SAC hedge fund issued subpoenas

May 23, 2013 at 4:41 PM   |   Comments

STAMFORD, Conn., May 23 (UPI) -- Three executives at SAC Capital Advisors LP were issued subpoenas related to a U.S. insider trading investigation, The Wall Street Journal reported Thursday.

Citing sources it did not name, the newspaper said SAC President Thomas Conheeney, Chief Compliance Officer Steven Kessler and head of trading Phillipp Villhauer were issued subpoenas, but none have been accused of wrongdoing.

The executives work closely with billionaire Steven Cohen, who founded the hedge fund. Authorities are trying to secure evidence to charge Cohen before a five-year statute of limitations for securities fraud runs out, the report said.

SAC, a hedge fund valued at $15 billion, agreed to pay $615 million in March to the Securities and Exchange Commission to settle charges related to insider trading, but admitted no wrongdoing. The size of the fine is a record for a hedge fund.

It had already been known that subpoenas were issued, but it was not previously known who received them.

None of the executives were available to comment, a spokesman for the hedge fund said. The firm also declined to comment, as did the Manhattan U.S. Attorney's office and the FBI, the Journal said.

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