Steve Cohen and Uncle Sam are no longer going steady.
The hedgie’s SAC Capital yesterday said it will no longer “unconditionally” cooperate with the government’s insider-trading probe.
In a brief letter to investors, the $15 billion hedge fund described the coming months as critical, saying it expects “substantially more clarity” into the probe’s impact on SAC during that time.
SAC also said it plans to stop giving investors updates on the probe.
Legal watchers said the move suggests SAC is girding for battle.
“It sounds like the government is ratcheting up the heat on SAC, and they’re saying, ‘We’re not going to cooperate fully because we don’t like the direction this is going,’ ” said Andrew Stoltmann, a securities lawyer.
“I think old Stevie [Cohen] is feeling the heat and closing ranks, so to speak,” the Chicago lawyer said.
“The only reasons you would ever say that is if things are going south — and probably in a hurry,” said a second lawyer, who asked not to be named.
SAC spokesman Jonathan Gasthalter declined to comment.
The FBI and federal prosecutors, who have been conducting the probe, also declined to comment.
As many as seven people arrested in the government’s widespread probe have confessed to or have been accused of illegal insider trading while at SAC Capital. Two trials involving SAC trades are pending.
A November trial is set for Michael Steinberg, one of Cohen’s top lieutenants, who stands accused of trading Dell and Nvidia shares based on confidential tips received from his analyst.
SAC portfolio manager Mathew Martoma is also gearing up to battle accusations that he helped the firm earn $276 million trading two drug stocks based on confidential tips.
The five-year statute of limitations to bring additional charges in that case ends this summer.