What Is Going On At SAC Capital Anyway?

SAC Capital Advisors, the prestigious hedge fun run by Stevie Cohen, has come up quite frequently in the insider trading case that's sweeping the industry.

Today, Noah Freeman, a former SAC Capital was arrested, and is now agreeing to help the prosecutors get someone much larger than himself.

SAC Capital has always maintained the highest of integrity levels, and these charges against former employees, as well as the subpoena the fund received a while back has certainly put a black eye on it.

Stevie Cohen himself has not been named in any insider trading cases, but given the remarkable returns that SAC Capital has produced for such a long time, it's not out of the question for it to happen.

According to Bloomberg, Donald Longueuil, who was also arrested this morning on the insider trading case, is said to be former SAC Capital employee as well.

Longueuil worked at SAC Capital-unit CR Intrinsic for two years, from July 2008 to July 201. Freeman worked at SAC from June 2008 to January 2010.

Jason Pflaum, who is a technology analyst, has also been arrested and has agreed to cooperate with the government in this case. It is not known where Pflaum works at this moment in time.

If SAC's name continues to get dragged through the mud, then Cohen and his team will take a massive hit, in terms of losing out on talent, lost business, as well as mass investor redemptions. No one wants to do business with a criminal or anyone associated with criminals, and it could lead to a drastically different SAC Capital as we know it.