20 Jul 2013

Fund manager charged with failing to stop insider trading

1:42 pm on 20 July 2013

A US hedge fund manager has been charged by the US Securities and Exchange Commission with failing to stop insider trading.

SAC Capital Advisors founder Steven Cohen, 57, is accused of not properly supervising two traders who engaged in insider trading.

The fund said the charges had "no merit" and pledged to fight the case.

The SEC said the traders made about $US275 million for the fund as a result of illegal information. It claims one of them was rewarded with a bonus of $US9 million.

The BBC reports the agency is seeking to have Mr Cohen banned from managing funds in future.

Traders Mathew Martoma and Michael Steinberg face trial in November. They deny the charges of insider trading.

SAC Capital Advisors is a fund worth about $US15 billion.