Komfie Manalo, Opalesque Asia:
Steven A. Cohen denied the charges filed against him by the Securities and Exchange Commission (SEC) that he failed to stop insider trading practices at his $15bn hedge fund firm, SAC Capital Advisors, an AP report said.
Last week, the SEC filed federal civil charges against Cohen for allegedly failing to supervise two senior employees and prevent them from insider trading under his watch, namely Matthew Martoma and Michael Steinberg.
"Instead of scrutinizing their conduct, Cohen praised Steinberg for his role in the suspicious trading and rewarded Martoma with a $9m bonus for his work," the regulator said in a statement. Cohen’s hedge funds earned profits and avoided losses of more than $275m as a result of the illegal trades.
According to AP, lawyers for Cohen stated yesterday that the hedge fund manager did not read an email at the center of the investigation and dismissed the SEC charges as "unfounded" in a memo sent to employees of the firm on Monday.
They further said that Cohen "had every reason to believe" that one of his managers was using only public information to make trades, and that he had not read the email from the other manager.
Cohen, 57, faces possib......................
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