Thursday, 24 July 2014
Last updated 3 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…