Ex-SAC Capital manager cooperates with feds
To build a strong insider trading case against SAC Capital found Steven Cohen, prosecutors will need help from people on the inside.
So far, their best hope, Mathew Martoma, has refused to turn state's evidence. He has pleaded not guilty to insider trading charges and will risk jail time rather than cooperate against Cohen. But as it turns, federal prosecutors do have a former SAC Capital insider on their side.
DealBook reports that Wesley Wang, "a journeyman hedge fund analyst who spent just a couple of years at SAC Capital nearly a decade ago," has been cooperating and has made significant contributions. He provided about 20 names of people who might be guilty of insider trading and "contributed to the criminal conviction of more than 10 people."
The cooperation of Wang had been under wraps and was made public recently via court documents by prosecutors who are advocating for a lenient sentence for Wang, who is scheduled to be sentenced today. Wang quitely pleaded guilty to insider trading charges last summer, admitting to illegally leaking confidential information about technology stocks.
The full implications of Wang's cooperation have yet to be realized, as there are active investigations on-going about the affairs of people he named. But it would not appear likely that he had the goods on Cohen.
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