Wednesday, 2 December 2015
Last updated 7 hours ago
Dec 18 2009 | 11:15am ET
More than two years before filing her $300 million lawsuit accusing ex-husband Steven Cohen of insider-trading, Patricia Cohen took her concerns to the Federal Bureau of Investigation.
Patricia Cohen, who was divorced from the SAC Capital Advisors chief in 1990, contacted FBI Special Agent B.J. Kang in 2007, after reading a report about SAC’s battle with Canadian insurer Fairfax Financial Holdings. She said she first began to suspect something was amiss at her ex-husband’s hedge fund after seeing another report on alleged market manipulation by SAC, this one by the CBS newsmagazine ’60 Minutes’ on its battle with pharmaceutical company Biovail.
She later spoke with Kang’s supervisory, FBI Supervisory Special Agent Patrick Carroll, the New York Post reports. Kang, who reportedly interviewed Patricia Cohen at her Manhattan apartment, had been looking into allegations of illegal activity at SAC. More recently, he has been involved in both the Raj Rajaratnam and Bernard Madoff fraud cases.
In her lawsuit, filed on Wednesday, Patricia Cohen accuses her ex-husband of having traded on insider information about General Electric’s takeover of RCA in 1985. She alleges that Cohen told her he made a substantial amount of money on the trade, which allegedly occurred while he was at investment bank Gruntal & Co., but that it wasn’t insider-trading.
Cohen went on to found SAC’s predecessor the following year. His ex-wife alleges that he hid millions in assets from both her and the authorities, lying under oath about his net worth. Her lawsuit also alleges that he committed mail and wire fraud.
A SAC spokesman called Patricia Cohen’s claims “ludicrous” and “entirely without merit.”
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…