Senator investigating SAC Capital trades

Sen. Charles Grassley is investigating about 20 instances of suspicious trading by the hedge fund SAC Capital, a spokesman for the senator has confirmed.

Grassley (R-Iowa) requested the information about the trades from the Financial Industry Regulatory Authority (FINRA), an independent regulator of brokerage firms. SAC is a large Stamford, Conn.-based hedge fund founded by billionaire Steven Cohen. Grassley's inquiry comes amid a massive government investigation into insider trading at hedge funds. Two former SAC portfolio managers have pleaded guilty to securities fraud. No charges have been brought against SAC or Cohen.

In April, Grassley requested information about the SAC trades from FINRA. News that the regulator has sent the information to Grassley was first reported by The Wall Street Journal and was confirmed by Grassley's spokesman, Jill Kozeny, on Saturday.

SAC representatives met May 10 with Grassley's investigators. "We welcomed the opportunity to meet with the staff to educate them about the firm and our compliance efforts, and had an entirely appropriate, professional and cordial meeting," said SAC spokesman Jonathan Gasthalter. "We will continue to cooperate in any way we can."

-- AP