SAC Capital’s compliance chief Steve Kessler will step down effective Feb. 28, Bloomberg News’ Joanna Ossinger reports citing an internal memo to employees.
Kessler, an attorney who has been practicing law since 1978, said he wanted to spend more time with family
Kessler was one of three SAC executives to receive a subpoena from a grand jury during the insider trading probe, according to a report in the Wall Street Journal.
SAC, the once $US14 billion Stamford, Conn-based hedge fund run by Steven A. Cohen, was criminally indicted last summer on insider trading charges. Federal prosecutors charged the fund “with criminal responsibility for insider trading offenses committed by numerous employees and made possible by institutional practices that encouraged the widespread solicitation and use of illegal inside information.”
In November, SAC pleaded guilty to criminal insider trading charges and agreed to pay a $US1.8 billion fine.
Right now, the fund is in the process of finalising its new corporate structure and selecting a new name, Dealbook recently reported. SAC will no longer manage outside capital and will operate as a family office hedge fund managing about $US9 billion of Cohen’s personal fortune and money from its employees.