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SAC Capital Advisors Prepares To Become Family Office; Another Executive Subpoenaed - Reports
Tom Burroughes
31 May 2013
SAC Capital Advisors is preparing plans to become a family
office amid reports that a fifth executive at the hedge fund has been
subpoenaed to appear before the grand jury considering criminal insider-trading
charges against the firm, media reports said. Stamford, CT-based SAC Capital Advisors is creating a plan to return
outside capital, according to Fox Business. The news service was told that an
announcement that SAC will become a family office, designed to run founder
Steven Cohen's fortune, will be made within weeks. The news service said it was not clear if the firm is examining
other avenues. Prosecutors are reportedly considering racketeering charges
against SAC as a criminal enterprise. To avoid those or any other charges,
Cohen has been mulling the shutdown as part of an offer to prosecutors. Cohen's
wealth accounts for over half of SAC's $15 billion in assets. Cohen and five other top SAC executives have been
subpoenaed. The latest to join the group is Anthony Vaccarino, a portfolio
manager at the firm. Reports said that the firm’s president Tom Conheeney,
chief operating officer Solomon Kumin, compliance chief Steve Kessler and
trading chief Phillipp Villhauer have received subpoenas.