From Komfie Manalo, Opalesque Asia – Government investigators are considering using the Racketeer Influenced and Corrupt Organizations Act to pin Steven Cohen and his hedge fund firm SAC Capital in insider trading, various media reported.
The RICO law, which is commonly used by government prosecutors against the mafia, is being considered against Cohen, but legal experts argue that using the tactic would require the approval of the Department of Justice.
According to Reuters, the office of Manhattan U.S. Attorney Preet Bharara and the Department of Justice did not comment on the report.
At least nine former and current SAC employees have been charged by the government in connection with insider trading, including former portfolio manager Mathew Martoma and Michael Steinberg. But Cohen himself has not been formally charged despite being under the probers’ eye for nearly six years.
The fact that investigators are thinking of using RICO against Cohen may show that the government has no strong evidence against the hedge fund manager in connection with the alleged insider trading.
Early this week, it was reported that Cohen had been subpoenaed by a feder......................