REPORT: Prosecutors Might Go After SAC Under Law That Was Made For The Mafia

Reuters/ Steve MarcusThe Wall Street Journal’s Michael Rothfeld reports authorities are considering charging SAC Capital as a criminal enterprise through the Racketeer Influenced and organised Corruption Act (RICO) act.

RICO laws were famously used to bust mafia and drug rings in the ’80s and ’90s.

Fox News apparently first reported this. Here’s Charlie Gasparino’s Tweet:

More details from WSJ’s Rothfeld:

…prosecutors and the Federal Bureau of Investigation face a five-year legal deadline in July to bring securities-fraud charges in an investigation that touches SAC’s billionaire founder, Steven A. Cohen.

Under RICO, prosecutors could file charges in connection with crimes committed over the past decade, as long as any act that is part of the alleged enterprise occurred within the past five years.

The government has been investigating charges of insider trading by the firm and its founder, Steve Cohen, for years.

SAC told investors last week that it would cease cooperating unconditionally with the government’s investigation.

SAC was recently the subject of the largest insider trading settlement in history.

Read the full report on WSJ.com >

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.