Hedge fund founder Steven Cohen charged over ‘insider trading’
BBC News, 19 July 2013
A billionaire hedge fund manager has been charged with failing to stop insider trading, the US Securities and Exchange Commission (SEC) says. SAC Capital Advisors founder Steven Cohen, 57, faces civil charges over what the US government has called one of the biggest such fraud cases ever. Mr Cohen did not properly supervise two traders who engaged in illegal insider trading, the SEC alleges.
But the fund said the charges had “no merit” and pledged to fight the case. As a result of the illegal information, the traders made about $275m (£180m) for the fund, the government has alleged. It added that Mr Cohen was aware of the information but rewarded one of his employees with a $9m bonus, instead of cracking down.
