Cohen’s Ex Taps Legal Financing Firm In Divorce Battle

Nov 26 2014 | 12:38pm ET

When a federal judge earlier this month gave Steven Cohen’s ex-wife’s lawyers the go-ahead to question him about the insider-trading scandal that engulfed his hedge fund, she cited the “seemingly inexhaustible resources that each side has brought to bear.” It’s easy to see how the billionaire has borne those costs; now, it’s also become clear how his much-less-well-heeled-ex has done so.

Patricia Cohen, who was divorced from the SAC Capital Advisors founder in 1990, has the backing of Asta Funding and Balance Point Divorce Funding to foot her legal bills. Under the terms of the agreement, Balance Point could get up to 25% of any money Patricia Cohen wins in her fraud lawsuit against Steven Cohen, which accuses him of hiding a $5.5 million real-estate settlement from her during their divorce.

Patricia Cohen engaged Balance Point last summer, The New York Times reports, agreeing to provide her with about $1.2 million to continue what has become a five-year legal battle during which Patricia has gone through five lawyers.

“Patricia, like others similarly situated, could never mount the necessary fight against a very wealthy adversary and represented by one of the top law firms without help,” her latest lawyer, Gerald Lefcourt, told the Times.

Steven Cohen, who transformed SAC into a family office called Point72 Asset Management following its guilty-plea to insider-trading charges, is set to be deposed by his ex’s lawyers on Dec. 10. Earlier this month, the judge overseeing the case said Patricia Cohen’s team could question him about “prior acts of untruthfulness,” including about statements he made during the fraud probe into SAC.

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