Prosecutors Probe Potential 'Willful Blindness' By Cohen

Jun 26 2013 | 12:21pm ET

Having trouble making conventional insider-trading charges stick against SAC Capital Advisors or founder Steven Cohen, federal prosecutors may seek to allege that Cohen was willfully blind to the allegedly illegal activities of his subordinates.

While prosecutors haven't abandoned other legal avenues against SAC or Cohen, they are investigating the conscious avoidance theory. Under such an allegation, the government would accuse Cohen of deliberately avoiding knowledge of potential illegal activities at his firm.

Prosecutors are said to believe that such a tack against SAC could prove fruitful, given the firm's structure, The Wall Street Journal reported. At SAC, trade ideas are generated by the firm's teams, and the best are filtered up to Cohen and the firm's other top managers.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...