In addition, SAC raised $500 million last year for a reinsurance company that can invest in its hedge funds.
The scrutiny on Cohen and his firm grew in November when former portfolio manager Mathew Martoma was charged in what U.S. prosecutors called the biggest insider-trading scheme in history. It was the first time the SAC founder was directly linked to trades that allegedly used inside information.
The five-year statute of limitations covering the 2008 trades, in which SAC netted $276 million in profits and averted losses from alleged inside information concerning a drug trial, expires in late July. Cohen hasn’t been accused of any wrongdoing. Martoma has pleaded not guilty and will go on trial Nov. 4.
The U.S. Securities and Exchange Commission, which won a record $602 million civil settlement with SAC over the trades in March, also must move by July if it decides to sue Cohen personally.
After Cohen was subpoenaed, SAC told clients in a May 17 letter that it was no longer cooperating unconditionally with the government, news that prompted many clients who had supported the firm through the government’s multiyear investigation to put in withdrawal notices.