Four senior executives at Steven Cohen’s SAC Capital Advisors LP received subpoenas as part of the U.S. multiyear probe into insider trading at the hedge fund firm, a person with knowledge of the matter said. Subpoenas were sent to Tom Conheeney, president of SA; Steve Kessler, head of compliance; and Phillipp Villhauer, head trader. A fourth executive, Chief Operating Officer Solomon Kumin, also received a subpoena, the person said later.
Cohen, SAC’s billionaire founder, was sent a subpoena last week to appear before a federal grand jury. After Cohen was summoned, SAC Capital told clients in a May 17 letter that it was no longer cooperating unconditionally with the government and it would no longer be updating clients on the matter. The firm expects “substantially more clarity” in coming months, according to the letter, portions of which were provided to Bloomberg News. The Wall Street Journal reported the executive subpoenas today. Conheeney joined SAC in 1999 and was made president in 2008, while Kessler started in 2005, according to fund documents. […] Villhauer helped SAC make or avoid losses of $276 million on trades that led to the arrest of former portfolio manager Mathew Martoma for alleged insider trading, two people familiar with the matter said in November. Martoma has denied wrongdoing. The U.S. has already linked at least nine current or former employees to allegations of insider trading while at SAC Capital.