Hedge Fund Company accused of insider trading by U.S. Senator

May 11, 2011, 10:42 by R.E. Christian

A senior U.S. senator has asked federal regulators to investigate possible insider trading at SAC Capital Advisors, a high-profile hedge fund.

Sen. Charles Grassley, R-Iowa, said in a recent letter to the Financial Industry Regulatory Authority that two former SAC fund managers had been charged with insider trading, which raises suspicions about the firm.

"While SAC Capital itself has not been charged, these allegations raise serious questions about the corporate culture at SAC Capital and undercut investor confidence in a fair and balanced playing field," wrote Grassely, the ranking Republican on the Senate Judiciary Committee.

The Wall Street Journal said SAC was one of the nation's most prominent hedge funds with $12 billion in assets.

The newspaper said Saturday there was no immediate comment on the April 26 letter from either SAC or government regulators. An SAC spokesman previously said it fired the two fund managers over their performance and was cooperating with the investigation into their actions.

Source: UPI