Fri, Nov 28, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Update: Steven Cohen’s attorneys dispute SEC’s neglect charges

Wednesday, July 24, 2013

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......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Exclusive: Risk management emerges as a competitive focus area for hedge funds[more]

    Bailey McCann, Opalesque New York: Risk management has always been a core component of any trading strategy, as well as a critical part of business management. However, as macreconomic weakness persists, and alpha becomes increasingly hard to generate, risk management as emerged as a more promin

  3. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  4. CTAs , event-driven strategies lead hedge funds recovery in mid-November[more]

    Komfie Manalo, Opalesque Asia: November’s performance proves to be in sharp contrast to the previous month, with equities further consolidating their upswing last week, according to the latest Lyxor Asset Management’s Weekly Brief. CTA funds als

  5. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took