Sticky money brought Steven Cohen to Bermuda to launch SAC Re Holdings, but last week things got really sticky for the hedge fund colossus and New York Mets part-owner.According to theFinancial Times SAC Capital Management held a 20-minute phone call with investors on Wednesday, saying it was informed last week that the Securities and Exchange Commission was planning to bring civil fraud charges against it. The procedure is called a Wells Notice.The story has reported that US authorities say that SAC avoided losses of $194m and made an $83m profit betting against the share prices of pharmaceuticals companies Wyeth and Elan ahead of the results of an Alzheimer’s drug trial. “According to people familiar with the Wells Notice, it concerns alleged securities fraud and a failure to have systems in place to prevent such violations,” said theFTarticle.A New York Post story at the time of the launch of Mr Cohen’s Bermuda-based SAC Re Holdings was established with $500 million of capital raised through a private stock sale. SAC, which at that time had $14 billion under management, was reported to be in control of managing the insurance company’s assets, according to a press release issued by the new company.The story described the move by Mr Cohen as ...”join(ing) the ranks of other notable hedgier by launching a tropical island-based reinsurance company.”It continued: “The aim of having a hedge-fund-controlled reinsurance company is that it will provide very sticky money — cash won’t seek to run if the going gets tough.”The FT story reporting on the recent legal developments said that SAC and Mr Cohen had not been accused of wrongdoing and the company has said it is cooperating with the inquiry. A lawyer for Mr Martoma has said that he will fight the charges and expects to be exonerated.“It is the latest step in an investigation by the US authorities into insider trading on Wall Street that has used wire taps, cooperating witnesses, e-mails and instant messages to secure convictions against 73 traders, lawyers and consultants.“Mr Cohen spoke briefly on the call, and said he was confident that he and the firm had acted appropriately, according to people who listened to it. The call was then led by Tom Conheeney, SAC President, who said that the firm would re-examine its compliance procedures and bear all legal costs. He did not answer questions.”The notice arrived at SAC on the same day that Mathew Martoma, a former SAC portfolio manager, was arrested on insider trading charges last week.