The sheer number of trades that SAC Capital makes every year is one reason that prosecutors and regulators believe that it might be extremely difficult to charge Steve Cohen or SAC Capital with insider trading.
Of course, their innocence might be another reason.
But that won’t stop prosecutors and regulators from trying, because they’ve been alerted to many instances of suspicious trading activity, according to a new article in Reuters.
Including, “one that centres on trading in Red Robin Gourmet Burgers.”
First, just one one trade by a firm like SAC gets brought to regulators’ attention. Once a firm has been brought to regulators’ attention once, that firm is on their radar and thus, trades of theirs might be brought to regulators’ attention more often.
One type of trade in particular attracts regulators’ attention, according to Reuters:
- Trades made shortly before a takeover, critical announcement about a drug or a patent or some other market moving event.
Bottom line: It’s hard to tell how many out of the total 903 referrals of possible insider trading that FINRA has sent to the SEC for review in the last three years have been SAC Capital’s trades. However they’ve been on the radar for the past 4 years, and regulators have sent “dozens” of their trades to the SEC.