Cohen’s Ex-Wife Wants ‘Substantial’ Stake In SAC

Apr 7 2010 | 12:24pm ET

Steven Cohen’s ex-wife is upping the ante in her battle with the SAC Capital Advisors founder, demanding a big chunk of the hedge fund in a new lawsuit against him.

In fact, Patricia Cohen may have even greater ambitions: taking the SA out of SAC.

In a new lawsuit against her former husband, Cohen is seeking a “substantial, if not controlling, interest in SAC Capital and various related SAC entities, now valued at over $12 billion.” Patricia Cohen says she is entitled to the SAC stake because Steven Cohen hid millions in assets from her and the authorities during their divorce 20 years ago.

The new lawsuit was filed by Cohen’s new lawyer, Gaytri Kachroo, who replaced Paul Batista in January. Batista, who withdrew her original racketeering lawsuit after he was dismissed from the case, last week sued Patricia Cohen and Kachroo, alleging he is owed legal fees.

SAC spokesman Jonathan Gasthalter called the new lawsuit “ridiculous” and “a blatant extortion attempt.”

The new lawsuit, filed in Manhattan federal court, alleges that Steven Cohen founded SAC in 1992—two years after his divorce was finalized—with the money he hid from his ex-wife as well as with $10 million in profits earned trading on insider information about General Electric’s takeover of RCA in 1985.

What’s more, Patricia Cohen added her former brother-in-law Donald and officials of Gruntal & Co., the investment bank where Steven Cohen worked during the marriage, to the complaint.

“Steve has successfully hidden his deceit and misconduct from Patricia, with active participation and schemes by his brother” and the other defendants, the new complaint alleges.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    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…