SEC Settles for Two-Year Bar in Steve Cohen ‘Failure to Supervise’ Case
Bruce Carton, 08 January 2016
The SEC announced today that it has settled its high-profile lawsuit against hedge fund manager Steven A. Cohen, founder of SAC Capital. Under the Order resolving the case, Cohen will be prohibited from supervising funds that manage outside money until 2018. The SEC had charged Cohen with failing to supervise former portfolio manager Mathew Martoma, who was convicted of insider trading while employed at SAC.
As I noted here in late December, Cohen was prepared to launch the latest constitutional challenge to the SEC’s administrative proceedings process as part of his defense. His lawyers stated that they “would have filed that [in mid-December] except for the settlement discussions that had been ongoing.”
