Cohen Ex-Wife’s Racketeering Lawsuit Dismissed

Mar 31 2011 | 2:32am ET

An explosive lawsuit accusing SAC Capital Advisors’ Steven Cohen of perjury and insider-trading has been thrown out of court.

U.S. District Judge Richard Holwell, who is separately overseeing the insider-trading trial of Galleon Group founder Raj Rajaratnam, dismissed the complaint, filed by Cohen’s ex-wife, with prejudice, which prevents Patricia Cohen from refilling it.

“Amendment would not be fruitful where plaintiff has already had three opportunities to state a claim,: Holwell ruled.

The judge said that Patricia Cohen, who was divorced from the hedge fund honcho in 1991, took too long to bring the case in 2009, amending it twice. The lawsuit, which once sought at least $100 million and “a substantial, if not controlling” stake in SAC, was eventually changed—three lawyers later—to seek just $8.25 million.

Holwell also ruled that Patricia Cohen made similar claims in a 1991 lawsuit.

“By 1985, Steven had become a very successful trader, but the Cohen’s marriage was far from a success,” the judge wrote. “This is a case where, some 20 years ago, Patricia alleged the same kind of fraud—hiding assets—by the same person—Steven—in the same negotiations at the same time.”

The crux of Patricia Cohen’s claim was that her then-husband hid assets both from her and the courts during their divorce proceedings 20 years ago. But her racketeering lawsuit also accused Steven Cohen of insider-trading in 1985, hiding $10 million in illicit profits earned.

“As we have said from the outset, the allegations by Mr. Cohen’s former spouse are entirely without merit,” SAC spokesman Jonathan Gasthalter said. “We are pleased the complaint has been dismissed.”


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR