Beleaguered hedge fund honcho Steve Cohen held a conference call yesterday for his roughly 1,000 employees to explain potential civil charges against his firm, SAC Capital Advisors, sources said.
The call with SAC’s employees went over similar talking points as the call with investors the previous day, according to a person familiar with the call.
In the latest call, officials notified employees that last week, the $14 billion Stamford, Conn., hedge fund received a Wells Notice from the Securities and Exchange Commission tied to trading by a former portfolio manager who was arrested Nov. 20 on insider trading charges.
A Wells Notice is a warning that charges could be forthcoming.
The portfolio manager, Mathew Martoma, was also sued by the SEC.
On yesterday’s call, first reported by CNBC, SAC official sought to assure employees that the Wells Notice is tied only to potential charges against SAC, not Cohen.
SAC has denied any wrongdoing.