FORTUNE -- Ronald Dennis will likely be the last person from SAC Capital to be charged with insider trading.
On Thursday afternoon, the Securities and Exchange Commission alleged that Dennis, while working as an analyst at SAC Capital and an affiliate firm, made or avoided losses of $3.75 million for the firm by trading on illegal tips about Dell and another tech company called Foundry. Dennis got the tips on Dell, shortly before the computer maker announced its quarterly earnings, from Jesse Tortora, who worked at a rival hedge fund Diamondback Capital. Tortora allegedly got the info from someone at Dell.
Dennis's involvement in SAC's insider trading activities was already known, and it's likely he cooperated with the government. Tortora and Diamondback were charged along with other hedge fund managers with insider trading back in 2012. Matthew Teeple, an analyst at an advisory firm who allegedly passed Dennis the tip about Foundry, was charged last year with insider trading.
Unlike the others, Dennis appears to have escaped criminal charges. In a throwback to pre-financial crisis justice, Dennis settled the charges with the SEC by paying a fine and agreeing to be barred from the Wall Street. He neither admitted nor denied the charges.
The fact that the SEC is closing the book on a cooperating witness is another sign that the government is unlikely to bring any further charges against Steven A. Cohen and that it is winding down its case against the hedge fund billionaire. Cohen is still fighting a civil proceeding from the SEC that could bar him from managing other people's money. But he has not been charged with any criminal wrongdoing despite the fact that eight other traders at his firm have been subject to such charges.
Last month, former SAC trader Mathew Martoma was found guilty of insider trading. The conviction led to some speculation that the government would revive its case against Cohen. Instead, the government seems to be packing up. And settling with a witness is just another sign of that.
Earlier this week, Cohen renamed his firm -- which has given back all of the money it held from outside investors but still manages Cohen's billions -- as Point72 Asset Management. It is located in the former office space of SAC Capital. You can send your congratulations cards there.
The primary regulator in charge of policing multi-level marketing frauds has only brought three new cases in the past 13 years.
FORTUNE -- Bill Ackman's campaign to prove that diet shake company Herbalife is operating a pyramid scheme has finally paid a dividend.
On Wednesday, Herbalife disclosed that it was under investigation by the Federal Trade Commission. The FTC later confirmed the news. Shares of Herbalife (HLF) have fallen 12% since the MOREStephen Gandel, senior editor - Mar 13, 2014 1:39 PM ET
It may seem awkward, but is there anything actually wrong with a hedge fund manager bankrolling an all-out assault on a company?
Correction: March 10, 4:45 PM.
FORTUNE -- Bill Ackman really, really wants to prove that Herbalife is a fraud. That's not new. What's new is the lengths he is apparently going to to convince everyone, particularly regulators, that he is right.
On Monday, the New York Times detailed those efforts in MOREStephen Gandel, senior editor - Mar 10, 2014 2:59 PM ET
Mathew Martoma is the eighth former trader at the billion dollar hedge funders' firm to be found guilty.Stephen Gandel, senior editor - Feb 6, 2014 4:53 PM ET
Bridgewater Associates has claimed that one of its key funds will do well in up and down markets. So how come it couldn't perform in 2013?
FORTUNE -- The hedge fund that claims it will never have an off year just had one in 2013.
Bridgewater Associates' All-Weather fund dropped 3.9% last year. This has come at a time when the sky for many investors has been quite clear. The stock MOREStephen Gandel, senior editor - Jan 9, 2014 2:50 PM ET
Steve Cohen's firm has pleaded guilty to insider trading. What will that mean for his personal philanthropy?
By Jennifer Reingold, senior editor
FORTUNE -- The Robin Hood Foundation -- Wall Street's favorite charity -- was named, rather cheekily, for the lovable fictional character who stole from the rich to give to the poor. But with this week's news that Robin Hood board member Steven A. Cohen will pay a record $1.2 MORENov 8, 2013 11:45 AM ET
The deal is a bigger loss for SAC, and perhaps the government, than it is for Stephen Cohen.
FORTUNE -- We now have a much bigger number for how much money average investors lose to insider trading. It's at least $1.8 billion.
That's how much money SAC Capital agreed to pay on Monday, along with pleading guilty to the criminal insider trading charges. The question is whether getting to that number, and MOREStephen Gandel, senior editor - Nov 5, 2013 8:58 AM ET
Why is the Justice Department fighting the bank just so it can hand a pile of money to hedge funds?
FORTUNE -- The Justice Department's proposed $13 billion settlement with JPMorgan Chase over mortgage misdeeds has stalled, and the issue appears to be this: Who should pay for WaMu's poo?
The Justice Department says JPMorgan (JPM). JPMorgan says an FDIC trust. The correct answer may not be the one you think.
Here are MOREStephen Gandel, senior editor - Oct 31, 2013 1:58 PM ET
$10 billion London hedge fund opens a New York storefront.
FORTUNE -- Odey Asset Management, a $10 billion hedge fund based in London, is opening a U.S. office in New York, Fortune has learned.
It will be led by new head of U.S. sales Tom Trowbridge, who previously was head of marketing for Lombard Odier's 1798 Investment Strategies Fund. In an email to friends and colleagues, Trowbridge wrote of Odey:
Besides the flagship global MOREDan Primack - Oct 10, 2013 4:52 PM ET
ValueAct's Jeffrey Ubben is up 20% this year, and Microsoft isn't even its biggest success.
FORTUNE -- Microsoft's management's biggest worry these days may not be Apple or Google, but an investor out of San Francisco.
Earlier this year, Jeffrey Ubben announced at a conference that his hedge fund ValueAct had bought $2 billion worth of Microsoft's shares. The investment might have been seen as a vote of confidence in MOREStephen Gandel, senior editor - Oct 10, 2013 1:09 PM ET
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