[ by Howard Haykin ]

Steven A. Cohen's SAC Capital Advisors received a Wells notice from the SEC, advising the firm that the Commission will likely file a civil complaint charging the $14 billion firm with insider trading.   The Wells notice was delivered on Wednesday, the same day that SAC was holding an investor conference call.

New Pressure.   Steven Cohen, one of the world's biggest and best-known hedge fund managers, now faces the type of pressure that it had successfully dodged for years.  For years, the firm was dogged by allegations that it had to have traded on insider information - how else could it have delivered average annual returns of 30% since 1992, the year the firm was founded.

Such big returns made Cohen, 56, a billionaire many times over, and attracted enormous investor interest - from funds of funds and wealthy individuals.  It also raised suspicions among their regulators - though neither  the firm nor its founder, Steven Cohen - were ever charged with insider trading.

So, with the firm potentially facing charges - addressed in the Wells notice, and with ex-SAC trader Mathew Martoma already charged with having made (and prevented losses) to the tune of $276 million - all by receiving insider information tips, everyone is facing a "brave new world."

For further details, go to:   [ Reuters, 11/28/12 ].