Steve Cohen Unclear On Insider Trading Rules In 2011 Deposition
Matthew Zeitlin, 06 November 2013
Steven A. Cohen’s hedge fund SAC capital will pay $1.8 billion fines for violating laws that Cohen once described as “very vague.”
SAC Capital, plead guilty Monday to five counts of wire and securities fraud in what U.S. Attorney Preet Bharara described as insider trading “on a scale without any known precedent in the history of hedge funds.” The fund agreed to pay $1.2 billion in penalties to settle the charges in addition to over $600 million SAC paid in a SEC settlement in March and to shut down its investing of outside money.
While Cohen himself was not charged criminally — although he does face a civil suit from the Securities and Exchange Commission — he does own the hedge fund and because of withdrawals from outside investors and restrictions imposed by the settlement, the firm’s assets under management are now mostly his $9 billion fortune.
