Hobbled by a criminal indictment, SAC Capital has shuttered one of its stock trading units, the latest setback for the once-powerful hedge fund run by the billionaire Steven A. Cohen.
SAC closed Parameter Capital Management late last week, according to people briefed on the matter. On Monday, Paramater’s phone lines were disconnected.
The unit was started in 2010 by two alumni of SAC, Anil Stevens and Glenn Shapiro. The division invested in an array of banks and other corporate giants, records show, including Wells Fargo and Bank of America.
A person close to SAC said that the move was planned long before prosecutors and the F.B.I in Manhattan announced the indictment in July. SAC decided to close the unit, the person said, because Mr. Stevens is planning to start his own fund.
