Cohen linked to insider-trading deal

Cohen linked to insider-trading dealThe investors of SAC Capital Advisors expressed serious concerns after prosecutors linked the company's founder, Steven A. Cohen to a deal that is being investigated in an insider trading scam.

Senior officials of the firm are aiming to calm largest clients after a former employee at the firm was arrested by the investigators in an insider trading scam. This is the sixth time that a current or former employee of the company has been linked to an insider trading case.

The executives of the $14 billion firm, which is based in Stamford, Connecticut, have held meetings with clients to convince investors. They assured clients that the company has robust compliance procedures and that the firm is cooperating with the government in the investigations.

It is being alleged that SAC benefitted to the tune of $276 million in profits and avoided losses in the case involving Mathew Martoma, a former portfolio manager at a unit of SAC. It is believed that Martoma used inside information from a clinical trial and traded in two health-care companies in 2008.

Investors said that they are more concerned over the latest allegation linking Cohen as he accused of trading those shares in his own private portfolio and he also discussed those shares with Martoma. "Mr. Cohen and SAC are confident that they have acted appropriately and will continue to cooperate with the government's inquiry," Jonathan Gasthalter, a company spokesman said.