SAC was charged with four counts of securities fraud and one count of wire fraud. The scheme, which involved more than 20 companies and went back as far as 1999, helped reap hundreds of millions of dollars in illicit profits, the U.S. said.
Jonathan Gasthalter, a spokesman for SAC, declined to comment on the prosecutor’s remarks today in court.
Swain set the next hearing for Sept. 24 after defense lawyers told her they may seek her intervention if disputes erupt about access to evidence. The judge will also preside over the trial of five former employees of Bernard Madoff who are accused of helping the convicted con man carry off the largest Ponzi scheme in U.S. history. That trial is set to begin Oct. 7.
The prosecutors in the SAC case are seasoned trial lawyers with insider-trading convictions in an office that has a 100 percent conviction rate. Apps, along with Assistant U.S. Attorney John Zach, in December won the convictions of Level Global Investors LP co-founder Anthony Chiasson and former Diamondback Capital Management LLC portfolio manager Todd Newman, who were part of a $72 million insider-trading scheme.
The third prosecutor, Arlo Devlin-Brown, is handling the office’s case against former SAC fund manager Mathew Martoma, who was charged in November with being part of the most lucrative insider trading scheme in U.S. history. Martoma, who’s pleaded not guilty, is scheduled to go to trial Nov. 4.
Theodore “Ted” Wells, a lawyer for SAC, has his share of victories in the Lower Manhattan courthouse. In November 2010, he successfully represented Citigroup Inc. in a multi-billion dollar lawsuit brought by Terra Firma Capital Partners Ltd. and its Chairman Guy Hands. Hands had claimed he was tricked by the bank into overpaying for EMI Group Ltd. in a 2007 auction. After the verdict, jurors shook Wells’s hand and congratulated him. An appeals court in Manhattan in May overturned the verdict.
Bharara said yesterday that SAC “trafficked in inside information on a scale without any known precedent in the history of hedge funds.”
Five of six former SAC employees have pleaded guilty and are cooperating with the U.S., while two, including Martoma, have pleaded not guilty and are set to go to trial in November.
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