Having no other recourse, SAC Capital’s guilty plea led the company to receive a record $1.2 billion fine for insider trading. Yet, while the hedge-fund company itself was found guilty, its owner, and the man who supposedly pulled the SAC strings, Steven A. Cohen, remains unindicted. And that may be the point of SAC agreeing to a record fine, to keep specific individuals out of jail. That move seems to be okay with Preet Bharara, the U.S. attorney who prosecuted SAC, “Sometimes you charge individuals, sometimes you seek a large penalty, sometimes you send people to jail, and sometimes you try to make the world understand that an entire institution deserves to be held blameworthy…” But what about sometimes doing right by the investors who lost or stands to lose a whole lot of money in the mess? How does penalizing a company directly help investors?
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
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Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: