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.
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
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
Traders buy up SAC-owned stocks.
FORTUNE -- Federal prosecutors today filed criminal insider trading charges against hedge fund SAC Capital, one week after filing civil charges against firm founder Steve Cohen. WSJ is reporting that the government is seeking $10 billion from SAC, while Fox Business says that SAC may shut down its fund by as early as later this afternoon.
One thing we know for sure is that SAC Capital's top MOREDan Primack - Jul 25, 2013 1:42 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
A new arrest at an SAC fund brings the government closer to Steve Cohen's door. Now might be a good time to become a family office in order to avoid future scrutiny.
FORTUNE -- The past few days haven't been kind to Steve Cohen, founder of the mega-hedge fund SAC Capital.
On Thursday, a judge decided not to approve his firm's settlement of insider trading charges with the Securities and Exchange Commission.
A MOREKatie Benner - Mar 29, 2013 2:05 PM ET
Silicon Valley's hottest non-consumer startup keeps getting richer.
TechCrunch yesterday reported that Palantir Technologies, a Silicon Valley-based provider of analytics platforms for financial and intelligence clients, has raised $70 million in Series F funding. From the post:
"While the company declined to reveal the valuation in the round, we've learned from sources that it is around $2.5 billion. Two unnamed New York-based hedge funds anchored the round, and multiple early investors and university endowments MOREDan Primack - Oct 7, 2011 10:45 AM ET
Senator Charles Grassley gave regulators more time to reveal details into whether they're miserably failing when it comes to investigating SAC Capital, or merely fumbling the ball. And the SEC didn't want to comply with that?
FORTUNE -- The Securities and Exchange Commission let Senator Charles Grassley know that the office will not be giving him any information regarding how regulators have handled referrals related to possibly suspicious trading at SAC MOREKatie Benner - Jun 10, 2011 1:14 PM ET
* What did SAC Capital know, and when did it know it? SEC investigates MedImmune trades from 2007.
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* Survey says: Most Americans still believe the country MOREDan Primack - Jun 1, 2011 7:25 AM ET
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