Steve Cohen being Charged
The Securities and Exchange Commission announced charges Friday against hedge-fund mogul Steven Cohen, accusing him of failing to supervise employees who engaged in insider trading.
Now SAC looked like it was getting off easy back in May when it agreed to pay $600 Million in fines but without admitting any wrong doing. Those fines would have been tax deductible also according to Forbes and no one goes to jail everyone can continue trading. (maybe)
""Hedge fund managers are responsible for exercising appropriate supervision over their employees to ensure that their firms comply with the securities laws," Andrew Ceresney, co-director of the SEC's enforcement division, said in a statement. "After learning about red flags indicating potential insider trading by his employees, Steven Cohen allegedly failed to follow up to prevent violations of the law.""
Ah well it's worth a shot for another couple of bucks!
(Trivia side note)
Steve Cohen was a major donor to Marriage Equality in NY
"What’s interesting is in the complaint against him the SEC published some instant messages between analysts and Cohen discussing whether or not former portfolio manager Mathew Martoma had information he shouldn’t have been able to get"
A trial for Martoma should begin in November as well as
a trial of SAC fund manager Michael Steinberg, the most senior executive from the firm to be indicted on insider trading charges, his trial starts on November 18.
Here is a link that might be useful: ah the instant message