Monday, 28 July 2014
Last updated 1 hour ago
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.
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…