“U.S. prosecutors are considering possible criminal charges against SAC Capital Advisors LP as a result of the government’s insider-trading investigation of the hedge-fund firm, according to people familiar with the matter.

“The move came before the company told clients Friday that it will no longer provide “unconditional” cooperation with the multiyear probe of SAC and billionaire founder Steven A. Cohen. The firm didn’t tell clients the reason for the reversal.

“It isn’t clear what led prosecutors to warn the Stamford, Conn., hedge-fund operator that it could be charged criminally. But the move is the strongest sign yet that prosecutors and the Federal Bureau of Investigation are trying to ratchet up the pressure as a five-year deadline looms to file the most serious charges related to trading that allegedly involved Mr. Cohen.

“Recent developments include subpoenas issued to Mr. Cohen and other SAC employees to provide grand-jury testimony, people familiar with the case said.”

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