SAC Receives Wells Notice

Tyler Durden's picture


It turns out the topic of today's much expected conference call originating at 72 Cummings Point Road Stamford, is what many already knew yesterday, namely that the SEC has warned SAC that after years and years of pursuits, the enforcer is finally getting close in for the kill, and has sent a Wells Notice, usually a first step before civil charges are filed.


The notice will be filed against the holdco, implying Cohen himself will be implicated, instead of just the CR Intrinsic OpCo where Martoma worker. Usually the SEC does not file Wells Notices without sufficient backing, so this may finally get interesting. But we are not holding our breath. One needs to simply recall how the SEC bungled its CDS insider trading case vs Millennium and Deutsche to see how the endgame here could well be another epic humiliation for the soon to be Schapro-less regulator.

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Wed, 11/28/2012 - 09:57 | 3017130 buzzsaw99
buzzsaw99's picture

the sec, bug lulz

Wed, 11/28/2012 - 10:01 | 3017138 GetZeeGold
GetZeeGold's picture



.....unless your name is Cohen. Then you're pretty much screwed.

Wed, 11/28/2012 - 11:14 | 3017160 TruthInSunshine
TruthInSunshine's picture

 "Call me Ishmael."

The hunt for Moby Dick is closing tight.

I'll be honest, because it really is the only way to go, and pointedly confess I thought this would happen PRE re-election, so that Obamney could get the perp walk pictures and give Eric Placeholder at least one slam dunk to diminish the harsh, withering (yet very accurate) criticisms of one Matt Taibi and those who happen to agree with him, so at least the fact that there may be at least one Moby indictment (emphasis on maybe) in a literal sea full of Mobys, post-election, is surprising.

If anything gives anyone an idea of how epicly large the monetary amount of swindling "the markets" IS (not was) by 'insider networks' used at various hedge funds, look no further than JUST ONE F*CKING example of undoubtedly hundreds (thousands?) over the years:

Well-Known Neurologist Passed Tips In SAC Insider Trading Case

November 20, 2012

(Bloomberg News)


Dr. Sid Gilman, a University of Michigan neurologist, was a $1,000-an-hour consultant who leaked confidential drug trial data that helped hedge fund SAC Capital Advisors LP illegally avoid losses or make a profit of $276 million, according to U.S. authorities.


Gilman, 80, was chairman of a safety-monitoring committee that oversaw a clinical trial by Wyeth LLC and Elan Corp. into whether the drug bapineuzumab, or bapi, was safe for patients with mild-to-moderate Alzheimer's disease. Gilman also moonlighted for a New York-based expert network, providing advice at a fee to former SAC portfolio manager Mathew Martoma, according to the Securities and Exchange Commission and Justice Department.


Gilman treated Martoma, 38, as a "friend and pupil" as he leaked him secret data for 18 months, authorities said. Gilman told Martoma on July 17, 2008, that bapi wasn't helping patients as expected, according to the SEC. Prosecutors today charged Martoma with insider trading and the SEC sued him, saying Gilman's tips let Stamford, Connecticut-based SAC and its CR Intrinsic Investors unit sell more than $960 million in Elan and Wyeth securities before a July 29, 2008, announcement of the drug-trial results.

"At the center of the scheme was the cultivation and corruption of a renowned medical doctor," U.S. Attorney Preet Bharara said today at a news conference in Manhattan. "He is prepared to testify in connection with a non-prosecution agreement."

I repeat, THIS IS BUT ONE F*CKING CASE, BITCHEZ, representing *alleged* (cough) manipulation of the selling of a cool billion in "equity" based on deep insider information, so do that multiplication table, bitchez.

100, 500, 1,000 of these cases over the last decade let alone last few years (maybe months?)...

...pretty soon, you're talking real money.

Good continued "luck" fishing in the ever-so-efficient equity "markets," Muppets of the world. Maybe stock up on KY lube, since that's been approved by the FDA and is being sold to the public.

Maybe it'll be a résumé bullet point consolation prize for one Eric H. Placeholder, Esq., who's in the league of extraordinarily [incompetent] gentlemen?

Wed, 11/28/2012 - 10:09 | 3017169 buzzsaw99
buzzsaw99's picture

million dollar fine, the sec apologizes for troubling cohen.

Wed, 11/28/2012 - 09:59 | 3017133 jcaz
jcaz's picture

Not a chance that Mary can take down Stevie.....

Wed, 11/28/2012 - 10:32 | 3017262 CPL
CPL's picture

If she wants help she knows where to go.  The matter is merely tactical now.

Wed, 11/28/2012 - 10:02 | 3017147 GMadScientist
GMadScientist's picture

Quick SAC, cover your wrists!

Wed, 11/28/2012 - 11:21 | 3017415 centerline
centerline's picture

lol... my thoughts exactly.  Another public spanking in hopes the masses will think there is some sort of law and order in place.  Laughable.

Wed, 11/28/2012 - 10:02 | 3017150 fonzannoon
fonzannoon's picture

Worse case scenario for Cohen is he gets thrown in the same cell as Corzine and they....wait a minute......

Wed, 11/28/2012 - 10:04 | 3017156 GetZeeGold
GetZeeGold's picture



Dude stop're killing me!

Wed, 11/28/2012 - 10:28 | 3017232 TruthInSunshine
TruthInSunshine's picture

Corzine + Cohen, incarcerated together even in close proximity, with access to at least one form of communication device to the outside world?

I smell trouble, bitchez! It'll be like that prison scene from Goodfellas, only with juicier steaks & moar/better double malt scotch!

Wed, 11/28/2012 - 10:06 | 3017161 Sancho Ponzi
Sancho Ponzi's picture SAC will pay a fine of $500 million and admit no wrongdoing. Case closed.

Wed, 11/28/2012 - 10:06 | 3017163 slackrabbit
slackrabbit's picture

The issued a Wells Notice cos they stopped supplying porn...

Wed, 11/28/2012 - 10:07 | 3017165 10044
10044's picture

And hence the drop in "paper" gold price

Wed, 11/28/2012 - 10:07 | 3017166 Water Is Wet
Water Is Wet's picture

I remember when the big banks were getting Wells Notices.  Does this mean SAC is about to get its own bailout?

Wed, 11/28/2012 - 10:12 | 3017187 orangedrinkandchips
orangedrinkandchips's picture

If I may quote the legend, Rudy Ray Moore (aka Dolemite)......


shit nigga KNOW all it takes is a check and viola! YOU ARE BACK AT IT AGAIN!


will be my life on it.....I know what happens already


Wed, 11/28/2012 - 10:15 | 3017196 SheepDog-One
SheepDog-One's picture

My only question is- 'This is a diversion from what?'

Wed, 11/28/2012 - 10:16 | 3017200 fonzannoon
fonzannoon's picture


Wed, 11/28/2012 - 10:33 | 3017267 CPL
CPL's picture

The incoming inflation because Singapore and Turkey are cutting US relations.

Wed, 11/28/2012 - 13:08 | 3017736 helping_friendl...
helping_friendly_book's picture

Are you kidding?

Or do you have a link for that tidbit of info?

Wed, 11/28/2012 - 10:18 | 3017211 orangedrinkandchips
orangedrinkandchips's picture

It is all smoke and mirrors......100% BULLSHIT.


SAC of shit OWNS the SEC, The Govt, The congresspeople.....YOU NAME IT...MONEY BUYS ANYTHING...



OOOOOOHHHH...A WELLS NOTICE...."SPPOOOOKY!" (As the cartoon Wow Wow Wubzy would say)



Wed, 11/28/2012 - 10:25 | 3017228 txsilverbug
txsilverbug's picture

SAC probably ordered the SEC to send the notice so as to inject confidence in the regulatory industry.  Nothing will come out of this.  No way they did this without the overlord's permission.

Wed, 11/28/2012 - 11:30 | 3017441 orangedrinkandchips
orangedrinkandchips's picture

Truly, nothing will come of this and it's really an insult to us as they think they are doing something.

Wed, 11/28/2012 - 11:49 | 3017500 Bangin7GramRocks
Bangin7GramRocks's picture

SAC Capital=Genco Pura Olive Oil.
There are only two ways to consistently outperform the market every year; an ability to see the future and insider information. Science has never proven a true clairvoyant so they must all be cheating. So fucking simple!

Wed, 11/28/2012 - 17:57 | 3018625 blunderdog
blunderdog's picture

I take your point, but it's only about $13B, isn't it?

That just doesn't seem like a lot these days...

Wed, 11/28/2012 - 10:28 | 3017241 I am Jobe
I am Jobe's picture

Too much time in Amerika just talking talking and talking. End to solving any issues. Yeap , nation of fuck heads, inbred , hookers .


Wed, 11/28/2012 - 10:28 | 3017243 Downtoolong
Downtoolong's picture

the soon to be Schapiro-less regulator.

And isn't it all too curious that she is leaving just as this case is unfolding. Coincidence? I doubt it. But, what does it mean?

To me it simply means there are too many mysteries and doubts about the entire financial markets to trust any side of it anymore. The only real question I want an answer to is - where do I run with what little is left of my savings to hide and defend myself from it all?

Wed, 11/28/2012 - 10:32 | 3017261 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Getting cold out there.

The SAC shrivels ...

Wed, 11/28/2012 - 10:53 | 3017340 firstdivision
firstdivision's picture

This could account for the selling going on.  Gotta liquidate the positions and move the money before buying.

Wed, 11/28/2012 - 12:45 | 3017672 helping_friendl...
helping_friendly_book's picture

Cohen is the name of the priestly class of the faith. They are the most priviledged. 

We know Judge Rakoff is the high priest of the moneychangers and would never convict one of his fellows at the temple.

I suppose with a name like Cohen he will be untouchable lest his accusers get shunned at the temple.

I saw Neel Kashkari on Bloomberg this morning praising Henry Paulson as the saviour of the western world. 

Made me want to go buy a high powered rifle with a scope.

What a douche!

Wed, 11/28/2012 - 14:23 | 3017981 Grinder74
Grinder74's picture

"Usually the SEC does not file Wells Notices without sufficient backing..."

Unless of course they're going after a small firm that they know will never be able to afford the lawyers needed to defend themselves against the unlimited resources of the government and will be forced to agree to a ridiculous settlement.


Wed, 11/28/2012 - 15:18 | 3018168 bagehot99
bagehot99's picture




Wed, 11/28/2012 - 17:55 | 3018620 blunderdog
blunderdog's picture

This may be start for great justice!

Take off every zig!

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