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Lucchese, Bonanno, Gambino, Genovese, Colombo...Cohen?

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Earlier today, the Wall Street Journalreported that federal prosecutors are considering charging SAC Capital as "a criminal enterprise, using a powerful legal tool employed against the mafia and drug gangs," i.e. the Racketeer Influenced and Corrupt Organizations Act. The use of RICO would give the government considerably more time to make a case against SAC, as it means prosecutors could "file charges in connection with crimes committed over the past decade, as long as any act that is part of the alleged enterprise occurred within the past five years," whereas this July marks the deadline for bringing securities fraud charges involving July 2008 trading in Elan and Wyeth by the fund.

The best part of this story, naturally, involves Charlie Gasparino, first to report the RICO angle yesterday, despite, he says, the denials of a SAC representative, whose legs CG is currently threatening to break, via Twitter.

Prosecutors Consider Use of Organized Crime Law Against SAC [WSJ]
CharlieGasparino [Twitter]


Steve Cohen Needs To Go Stress Shopping, STAT

In objective terms, worse things have happened to Steve Cohen than the news he received today. The charges against Mathew Martoma re: allegedly masterminding the largest insider trading scheme ever during his time at SAC. Friday's arrest of high-ranking employee Michael Steinberg. The $614 million he needs to personally pony up to settle with the Securities and Exchange Commission (which he may not even be allowed to do without an admission of guilt). The slanderous claim his house clocks in at a mere 14,000 square feet. The circling of federal investigators who want him bad. And yet presumably none of that compares to today's hit, which must have him in a fury that only the purchase of the Mona Lisa can assuage.