US billionaire Steven Cohen to answer case over insider trading
After a long investigation into insider trading at the hedge fund SAC Capital Advisors, an inquiry that has produced several guilty pleas and a record US$616 million civil penalty, the US government has brought a case for the first time against the fund’s billionaire owner, Steven Cohen.
In a civil action, the Securities and Exchange Commission accused Cohen, 57, of failing to supervise former employees who face criminal charges.
The commission contends that he ignored “red flags” that should have led him to investigate suspicious trading activity at SAC and take steps to prevent illegal conduct.
