SAC Capital is in a tough spot, as many wonder if the government's ultimate focus in its apparently massive insider trading case is in fact the powerful hedge fund firm run by Steven Cohen, the reclusive star manager who seems to be raising his public profile. Neither the firm nor Cohen has been charged. But every time a former SAC Capital employee is implicated, it gets the rumor mill worked up.

In response to the recent charges brought against two former employees, Donald Longueuil and Noah Freeman, the company issued a statement. "We are outraged by the alleged actions of two former employees, which required active circumvention of our compliance policies and are egregious violations of our ethical standards. The government alleges that their improper conduct together began at their prior firms in 2006 and continued after they joined SAC in mid-2008. They were employed at SAC for a short time and were dismissed in January 2010 and June 2010, respectively, due to poor performance. SAC is continuing to cooperate with the government's investigation."

You can bet the company has lawyered up and has a strategy worked out for all of the legal fallout. Cohen has reassured investors that the firm will not suffer as a result of the legal activity. Unfortunately, there are many other former SAC employees who are now implicated. Some of those are witnesses, notes Reuters.

For more:
- here's some background from Reuters

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