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 nation's top stock market cop needs a better compliance policy.
FORTUNE -- Here's a twist in the government's recent crackdown on insider selling: One of the main regulators tasked with policing the illegal practice may be instructing its employees to do just that.
Securities and Exchange Commission employees regularly sell shares of companies in their personal portfolios that come under investigation by the agency before those investigations become public. Indeed, in MOREStephen Gandel, senior editor - Mar 4, 2014 1:33 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
Steve Cohen's firm has pleaded guilty to insider trading. What will that mean for his personal philanthropy?
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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
A longstanding anomaly in American law gives federal prosecutors enormous power in deciding whether to punish a large corporation for the actions of even a single employee.
By Roger Parloff, senior editor
FORTUNE -- Hedge fund powerhouse SAC Capital Advisors, indicted Thursday for wire and securities fraud violations after six of its employees pleaded guilty to those charges, appears to have close to no legal defense to the charges it faces.
That's MOREJul 26, 2013 2:08 PM ET
Criminal charges against hedge fund are a backdoor way to end Steve Cohen's career.
FORTUNE -- When criminal charges were filed Thursday against the hedge fund SAC Capital, Preet Bharara, the U.S. Attorney for the Southern District of New York, held a press conference to announce the fruits of a years-long government investigation.
"SAC became, over time, a veritable magnet for market cheaters," Bharara told reporters. "That's why the institution, and MOREKatie Benner - Jul 26, 2013 7:01 AM ET
With evidence this solid, it's fair to ask once again whether Wall Street regulators are being too tepid.Stephen Gandel, senior editor - Jul 25, 2013 3:09 PM ET
SEC files civil case against hedge fund titan.
FORTUNE -- Apparently teflon sometimes can melt in the heat.
The Securities and Exchange Commission today filed civil charges against hedge fund titan Steve Cohen, alleging that he failed to "reasonably supervise" two employees at his SAC Capital. The pair -- Mathew Martoma and Michael Steinberg -- both had been previously charged with insider trading.
"Hedge fund managers are responsible for exercising appropriate supervision over their employees MOREDan Primack - Jul 19, 2013 2:47 PM ET
New York Attorney General Eric Schneiderman must explain why a 5-minute advantage for ordinary Thomson Reuters subscribers to access market-moving data is fine, while a 5-minute, 2-second one for premium subscribers is not.
By Roger Parloff
FORTUNE -- The fuzzy interface between our exception-ridden insider-trading laws, aggressive hedge funds, and resource-starved universities and journalism companies were all on stark display Monday when New York State Attorney General Eric Schneiderman and Thomson MOREJul 11, 2013 9:20 AM ET
Public pension official accused of profiting from tech merger.
FORTUNE -- John Johnson, the chief investment officer for the $6.5 billion Wyoming Retirement System, today was charged by the Securities & Exchange Commission with participating in a $29 million insider trading scheme. Two other men also were charged by the SEC, in a plot related to the 2008 acquisition of Foundry Networks by Brocade Communications (BRCD).
At the time, Johnson was between MOREDan Primack - Mar 26, 2013 2:53 PM ET
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