The probe of SAC Capital Advisors LP, which has led to insider-trading charges against the hedge fund and eight SAC employees, has snared an outside analyst who is accused of giving illegal tips to a former SAC manager, Bloomberg News reported yesterday. SAC Capital, owned by billionaire Steven Cohen, last week was indicted in what prosecutors called an unprecedented insider trading scheme stemming from the government’s six-year crackdown on Wall Street crime. While Cohen wasn’t charged, the U.S. indicted the fund he founded, saying that it had become “a magnet for market cheaters.” The U.S. alleged there had been a “failure by the fund owner and others” at SAC, and described separate insider trading schemes by eight SAC fund managers and analysts, including Noah Freeman, Donald Longueuil, Jon Horvath, Wesley Wang, Mathew Martoma, Richard Choo-Beng Lee, Michael Steinberg and Richard Lee. Steinberg and Martoma have pleaded not guilty and both are scheduled to go to trial in November. The other six have pleaded guilty and are cooperating with the U.S.
