Sunday, Jul 24, 2016
One of America's Great Newspapers ~ Toledo, Ohio

Stock Market

SEC files civil charges against hedge manager

WASHINGTON — The Securities and Exchange Commission leveled its most direct shot against billionaire hedge-fund manager Steven A. Cohen on Friday by filing civil charges that accuse him of failing to prevent insider trading.

The SEC alleged that Mr. Cohen, who founded and runs SAC Capital Advisors, failed to prevent two of his portfolio managers from illegally reaping profits and avoiding losses of more than $275 million. Both managers provided information to Mr. Cohen in 2008 that suggested they had access to inside information, the SEC said. But rather than raise any red flags, Mr. Cohen praised one of the managers and rewarded the other with a $9 million bonus, the SEC said.

Mr. Cohen, 57, faces possible fines and could be barred from managing investor funds. His firm, which once managed more than $15 billion in assets, is at the center of one of the biggest insider-trading fraud cases in history. Four employees have already been criminally charged with insider trading — two of whom have pleaded guilty.

Click to comment

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem?

Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet.

Copyright © 2015 Toledo Blade

To Top

Fetching stories…