If you're a financial thriller junkie, you'll love “Black Edge, Inside Information, Dirty Money and the Quest to Bring Down the Most Wanted Man on Wall Street,” the real-life story of the pursuit of hedge fund magnate Steven A. Cohen, founder and CEO of S.A.C. Capital Advisors LP, for alleged insider-trading violations.
“Black edge” is hedge fund slang for information that is “proprietary, non-public and certain to move markets ... the most valuable information of all,” writes Sheelah Kolhatkar in her chronicle of the seven-year effort by federal authorities to prove that S.A.C. and its employees, including Mr. Cohen, were guilty of trading on insider information.
Ms. Kolhatkar, a staff writer for The New Yorker, provides the reader with a detailed, reporter's-eye view of the evidence-gathering efforts of the FBI and subsequent legal actions taken by the Department of Justice and Securities and Exchange Commission regarding alleged insider-trading activities at S.A.C.
Ultimately, S.A.C. Capital Advisors and three affiliated entities admitted guilt on four counts of insider-trading violations leveled by Preetinder Singh “Preet” Bharara the U.S. attorney for New York and paid a $1.8 billion settlement. Seven former S.A.C. analysts and portfolio managers were individually convicted of insider trading.
But as for why Mr. Cohen himself was not among the indicted, you'll have to read the book.
Jonathan Gasthalter, a spokesman for Mr. Cohen, declined to comment about Ms. Kolhatkar's book, which will go on sale Feb. 7.