Wednesday, 23 July 2014
Last updated 15 hours ago
Feb 22 2012 | 2:07pm ET
SAC Capital Advisors founder Steven Cohen's ex-wife was back in court, trying to revive her lawsuit against the billionaire accusing him of hiding assets from her during their 1990 divorce.
A lawyer for Patricia Cohen told the U.S. Court of Appeals in Manhattan that she did not find out that her ex-husband had hidden some $5.5 million from her until four years ago. Patricia Cohen claims that Steven Cohen kept a $5.5 million legal settlement and $3 million mortgage off of his financial statement for 1989.
"The financial statement was wrong and deceptive," Howard Foster, Patricia Cohen, said at today's hearing. He asked the court to reinstate his client's lawsuit.
The SAC founder's lawyer, Martin Klotz, countered that "Mr. Cohen's statements about the mortgages are completely true;" according to Klotz, the mortgages eventually went into bankruptcy.
"Simply saying he got $5.5 million in 1986 and January 1987 says nothing," Klotz said. "I don't accept for a minute that he had $5.5 million."
Foster was unconvinced. "He is a hugely successful trader," he said. "He didn't just lose that $5.5 million. He kept it off the statement."
Klotz also contended that U.S. District Judge Richard Holwell dismissed Patricia Cohen's lawsuit last year—with prejudice—because it failed to meet a plausibility test. Holwell also noted that Patricia Cohen took too long in waiting to bring the case until 2009 and then amended it twice. She also made similar allegations in a 1991 lawsuit.
Patricia Cohen's lawsuit at various points accused her ex-husband of perjury and insider-trading, called SAC the product of a racketeering scheme and sought majority ownership of the hedge fund, before finally amending the lawsuit to seek only $8.25 million. Steven Cohen's lawyers called the suit an extortion attempt.
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…