Less than a week after the SEC filed its high-profile “failure to supervise” case against SAC Capital’s founder and CEO Steve Cohen, federal prosecutors in the SDNY followed suit yesterday with their own criminal case against SAC. As shown in the video above of U.S. Attorney Preet Bharara’s press conference announcing the charges, prosecutors contend that SAC became a “magnet for market cheaters” and empowered corrupt traders to engage in criminal insider trading by looking the other way “despite red flags all around.” Notably, however, prosecutors stopped short of bringing any criminal charges against Cohen himself.
