Federal regulators are preparing a civil fraud case against SAC Capital Advisors, the $14 billion hedge fund run by the billionaire investor Steven A. Cohen, the New York Times DealBook blog reported yesterday. SAC said that it had received a "Wells notice" from the Securities and Exchange Commission, an indication that the agency was considering an enforcement action against the hedge fund. Last week, federal prosecutors accused Mathew Martoma, a former SAC portfolio manager, with corrupting a doctor who provided him with confidential data on a drug trial. The secret information, authorities say, allowed SAC to earn profit and avoid losses totaling $276 million.
