SAC Capital – Page 2 – Financial Treason & Crime

Sheelah Kolhatkar, 09 January 2017

One day in early 2013, Preet Bharara, the U.S. Attorney for the Southern District of New York, met with his deputy, Richard Zabel, about one of the biggest cases of his career—a crackdown on insider trading in the hedge-fund industry. Although the financial crisis had receded, popular rage against Wall Street bankers and traders was still strong; most Americans had seen their incomes stagnate while the fortunes of the wealthiest continued to swell. For the previous few years, Bharara and the prosecutors who worked under him at the Southern District, along with investigators at the Federal Bureau of Investigation and the Securities and Exchange Commission, had been studying phone logs, wiretapping traders’ calls, and flipping witnesses, one after the other, as they worked their way deep into some of Wall Street’s most profitable hedge funds. Bharara was now considering a criminal indictment of Steven A. Cohen, the founder of a fourteen-billion-dollar hedge fund called S.A.C. Capital Advisors. Continue reading “Article: When the Feds Went After the Hedge-Fund Legend Steven A. Cohen”

01/03/201703/03/2021

Article: Why SAC Capital’s Steven Cohen Isn’t in Jail

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Why SAC Capital’s Steven Cohen Isn’t in Jail

Sheelah Kolhatkar, 03 January 2014

Ten thousand dollars an hour worth of lawyers filed into a courtroom in lower Manhattan on the morning of Nov. 8. The legal team represented Steven Cohen’s hedge fund, SAC Capital Advisors, which had agreed to pay $1.2 billion to settle criminal charges that it had engaged in securities fraud. The hearing was the culmination of a long legal struggle between SAC and the government that has dramatically altered what was once one of Wall Street’s most powerful firms. Eight former or current SAC employees have been charged with insider trading. Six of them have pleaded guilty; one, Mathew Martoma, is due to go on trial on Jan. 6, and another, Michael Steinberg, was convicted on Dec. 18 of insider trading in two technology stocks. Continue reading “Article: Why SAC Capital’s Steven Cohen Isn’t in Jail”

12/01/201603/04/2021

Article: Cohen, SAC Capital reach $135M insider-trading settlement

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Cohen, SAC Capital reach $135M insider-trading settlement

Kevin McCoy, 01 December 2016

Investment billionaire Steven Cohen and his former SAC Capital Advisors hedge fund have reached a preliminary $135 million settlement of insider-trading allegations filed by investors in Ireland drugmaker Elan. Continue reading “Article: Cohen, SAC Capital reach $135M insider-trading settlement”

12/01/201603/04/2021

Article: Steven Cohen and SAC reach $135m insider-trading settlement

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Steven Cohen and SAC reach $135m insider-trading settlement

Rob Copeland, The Wall Street Journal, 01 December 2016

Billionaire Steven A. Cohen and his former hedge fund SAC Capital Advisors agreed to a $135 million class-action settlement on November 30, bringing legal costs tied to SAC-related insider-trading cases close to $2 billion. Continue reading “Article: Steven Cohen and SAC reach $135m insider-trading settlement”

11/30/201603/04/2021

Article: Steve Cohen’s former hedge fund settles insider trading suit for $135M

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Steve Cohen’s former hedge fund settles insider trading suit for $135M

Carleton English, 30 November 2016

Steve Cohen’s former hedge fund agreed to pay $135 million to shareholders of Elan Corp. to settle claims that the fund’s alleged insider trading caused them to lose money.

The shareholders claimed that SAC Capital used insider information to trade shares in the pharmaceutical company — now owned by Perrigo — between 2006 and 2008. SAC got the inside info from doctors involved in the clinical trials of Elan’s Alzheimer’s drug, it was alleged. Continue reading “Article: Steve Cohen’s former hedge fund settles insider trading suit for $135M”

06/11/201603/04/2021

Article: How Steven Cohen Built, and Almost Lost, His $12.7 Billion Net Worth

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How Steven Cohen Built, and Almost Lost, His $12.7 Billion Net Worth

Kay Jenkins, 11 June 2016

Steven A Cohen has a net worth of $12.7 billion, a figure that grew from a relatively small $25 million seed investment into his hedge fund, SAC Capital, in 1992. The firm was wildly successful in the 1990s and 2000s, minting billions for Cohen and his investors until an SEC investigation into insider trading effectively shuttered the firm in 2012.

Cohen may have fallen from grace, but that doesn’t mean he’s out of the game forever. In fact, some think he just may be getting started. Continue reading “Article: How Steven Cohen Built, and Almost Lost, His $12.7 Billion Net Worth”

01/08/201603/04/2021

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”

10/20/201503/03/2021

Article: Northwest: Analysis of a Coordinated Short Selling Attack Against the Stock (NWBO, $4.69)

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Northwest: Analysis of a Coordinated Short Selling Attack Against the Stock (NWBO, $4.69)

LARRY SMITH, 20 October 2015

Again I can see some people scoffing at my suggestion of such broad based criminal actions but consider the following. Martin Martola of SAC Capital was sentenced to 9 years in prison because he had paid one of the primary investigators in the phase 3 trial of Elan’s bapineuzumab in Alzheimer’s disease to learn of results before they were made publicly available. The clinical trial investigator tipped Martola that the phase 3 trial was unsuccessful and Martola and his employer SAC Capital executed trades that resulted in $275 million of profits. SAC’s founder Steve Cohen was charged with the same crime, but Martola refused to testify against Cohen and he was not indicted. However, SAC made a $1.8 billion settlement for criminal and civil settlements and agreed not to manage outside money. Continue reading “Article: Northwest: Analysis of a Coordinated Short Selling Attack Against the Stock (NWBO, $4.69)”

10/07/201503/04/2021

Article: Steven Cohen returns to London after insider trading claims

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Steven Cohen returns to London after insider trading claims

Joanna Bourke, 07 October 2015

The US investment firm that oversees billionaire Steven Cohen’s wealth has agreed a deal to return to the UK, its new landlord has said. Two years after closing its London offices amid insider-trading allegations, Point 72 Asset Management will move to St James’s Square in London’s hedge-fund heartland.

The company plans to be operating out of the capital by the first quarter of 2016. It previously employed around 50 people in London. Continue reading “Article: Steven Cohen returns to London after insider trading claims”

08/19/201403/10/2021

Article: STEVE COHEN’S RIGHT-HAND MAN MAKES SURPRISE EXIT FROM FAMILY OFFICE

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STEVE COHEN’S RIGHT-HAND MAN MAKES SURPRISE EXIT FROM FAMILY OFFICE

MICHAEL FINNIGAN, 19 August 2014

Thomas Conheeney, the long-serving president of Steven A Cohen’s hedge fund SAC Capital, which pleaded guilty to insider trading last year, has stepped down from the organisation, less than a year after it converted to a family office. Conheeney, 50, will be replaced by Douglas Haynes, 48, a former director at consultancy firm McKinsey & Co, but will remain on in an advisory role until the end of the year.

Cohen said in a statement that he had worked with Haynes for several years on the board of New York poverty action charity the Robin Hood Foundation and was impressed by his work there so asked him to head his family office. Continue reading “Article: STEVE COHEN’S RIGHT-HAND MAN MAKES SURPRISE EXIT FROM FAMILY OFFICE”

04/17/201403/04/2021

Article: The Anti-Buffett: Steven Cohen

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The Anti-Buffett: Steven Cohen

Brian Stoffel, 17 April 2014

The Anti-Buffett: Why You Should Avoid This Hedge- Fund King’s Tactics Steve Cohen got his start by simply reading the tape. Who is Steve Cohen? Founder of SAC Capital, at one time a hedge-fund with $14 billion in assets Personal wealth valued at $11 billion

It all started when…  Steve was a high school freshman in Long Island, and spent his days playing poker.  By the time he was a junior, he was making between $500 and $1,000 per night from poker alone! When he was in college…  Cohen would sit outside the Merrill Lynch offices in Philadelphia, and watch the stock ticker whiz by.  Over time, Cohen believed he could guess the direction of stocks, without knowing anything about their underlying business. Continue reading “Article: The Anti-Buffett: Steven Cohen”

04/10/201403/04/2021

Article: SAC Capital $1.8 billion penalty approved

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SAC Capital $1.8 billion penalty approved

Aaron Smith, 10 April 2014

A federal judge on Thursday approved a $1.8 billion settlement resulting from the guilty plea of hedge fund operator SAC Capital on charges related to insider trading by its employees. The firm, now known as Point72, reached the settlement last November with federal prosecutors, citing the firm for failing to prevent its employees from engaging in the illegal activity. Continue reading “Article: SAC Capital $1.8 billion penalty approved”

12/18/201303/04/2021

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”

11/25/201303/04/2021

Article: Hedge fund giant SAC Capital to pay $1.8B penalty

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Hedge fund giant SAC Capital to pay $1.8B penalty

LARRY NEUMEISTER, 05 November 2013

SAC Capital Advisors will plead guilty to criminal fraud charges, stop investing money for others and pay $1.8 billion — the largest financial penalty in history for insider trading — to resolve criminal and civil claims against the hedge fund giant, the government announced Monday.

The government said in a letter to judges presiding over Manhattan cases that the “proposed global resolution” of the criminal and civil cases against SAC Capital Advisors and related companies also includes an agreement that SAC will cease operating as an investment adviser and will not accept any additional funds from third-party investors. Continue reading “Article: Hedge fund giant SAC Capital to pay $1.8B penalty”

11/06/201303/03/2021

Article: Steve Cohen Unclear On Insider Trading Rules In 2011 Deposition

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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. Continue reading “Article: Steve Cohen Unclear On Insider Trading Rules In 2011 Deposition”