Article: SEC Settles for Two-Year Bar in Steve Cohen ‘Failure to Supervise’ Case

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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. Continue reading “Article: SEC Settles for Two-Year Bar in Steve Cohen ‘Failure to Supervise’ Case”

Article: Hedge fund billionaire Cohen settles with SEC after years of being investigated

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Hedge fund billionaire Cohen settles with SEC after years of being investigated

Anthony Noto, 08 January 2016

Authorities have spent almost a decade trying to corner Steven Cohen on insider trading charges. Today, the hedge-fund billionaire settled the long-standing case with the U.S. Securities and Exchange Commission.

The result: Cohen has been barred from managing client money until 2018. The settlement determined that the hedge fund manager failed to supervise an employee, Mathew Martoma, who was convicted of insider trading. The SEC ruled that Cohen’s family office must bring on an independent consultant to review their activity to make sure they remain compliant with securities laws. Continue reading “Article: Hedge fund billionaire Cohen settles with SEC after years of being investigated”

Article: SEC accuses Cohen of missing insider trading red flags

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SEC accuses Cohen of missing insider trading red flags

gcrawford, 18 December 2013

Steven A. Cohen, the billionaire founder of hedge-fund firm SAC Capital Advisors LP, was accused by U.S. regulators of failing to supervise two employees facing criminal charges that they illegally traded stocks based on confidential information.

Cohen received highly suspicious information that should have caused any reasonable hedge-fund manager to investigate the basis for trades made by Mathew Martoma and Michael Steinberg, the SEC said in an administrative proceeding filed today. Cohen ignored red flags and allowed illegal trades that earned profits and avoided losses of more than $275 million, the SEC said.
Continue reading “Article: SEC accuses Cohen of missing insider trading red flags”

Article: SEC charges SAC Capital’s Steven Cohen over insider trading

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SEC charges SAC Capital’s Steven Cohen over insider trading

Verdict Staff, 22 July 2013

The US Securities and Exchange Commission (SEC) has filed civil charges against Steven Cohen, head of the hedge fund SAC Capital, for failing to supervise two portfolio managers and prevent insider trading.

In the complaint, the SEC alleges that Cohen received highly suspicious information that should have caused any reasonable hedge fund manager to investigate the basis for trades made by two portfolio managers who reported to him, Mathew Martoma and Michael Steinberg. Continue reading “Article: SEC charges SAC Capital’s Steven Cohen over insider trading”

Article: SEC Charges Steven A. Cohen With Failing to Supervise Portfolio Managers and Prevent Insider Trading

Article - Media, Publications

SEC Charges Steven A. Cohen With Failing to Supervise Portfolio Managers and Prevent Insider Trading

SEC, 19 July 2013

The Securities and Exchange Commission today announced charges against hedge fund adviser Steven A. Cohen for failing to supervise two senior employees and prevent them from insider trading under his watch.

The SEC’s Division of Enforcement alleges that Cohen received highly suspicious information that should have caused any reasonable hedge fund manager to investigate the basis for trades made by two portfolio managers who reported to him – Mathew Martoma and Michael Steinberg. Cohen ignored the red flags and allowed Martoma and Steinberg to execute the trades. Instead of scrutinizing their conduct, Cohen praised Steinberg for his role in the suspicious trading and rewarded Martoma with a $9 million bonus for his work. Cohen’s hedge funds earned profits and avoided losses of more than $275 million as a result of the illegal trades. Continue reading “Article: SEC Charges Steven A. Cohen With Failing to Supervise Portfolio Managers and Prevent Insider Trading”