Report: Cohen Could Settle SEC Case

Mar 27 2014 | 2:46pm ET

SAC Capital Advisors founder Steven Cohen is considering a settlement of the Securities and Exchange Commission’s charges against him.

According to CNBC, Cohen and his advisors have mulled settling the allegations that he failed to supervise his employees. Ten former SAC employees have been accused of insider trading by either the SEC or prosecutors; eight have pleaded guilty or been convicted.

SAC itself has pleaded guilty to criminal insider-trading charges; its $1.8 billion settlement with prosecutors will go before a federal judge on April 10. That agreement requires SAC to cease managing outside capital and become a family office, which will be known as Point72 Asset Management as of April 7.

Cohen himself has not been accused of criminal wrongdoing. Instead, the SEC sued him for failure to supervise months before the criminal charges against SAC.

A finding against Cohen in that case could see him barred from managing money or from the securities industry altogether—possibly for life. But CNBC reports that Cohen would consider a deal with the SEC, depending on how long a ban on managing outside capital it would insist upon.

SAC has denied the allegations, saying that Cohen acted appropriately at all times.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...