Leon Cooperman's Omega Advisors Gets Federal Subpoenas

Mar 26 2015 | 6:00pm ET

(Reuters) - Leon Cooperman's Omega Advisors Inc told clients earlier this week that it has been subpoenaed by federal prosecutors and regulators seeking information about its trading activities in certain securities, according to a letter seen by Reuters on Thursday.

The firm said it has not been charged with wrongdoing and that it is cooperating with the U.S. Attorney's office in New Jersey and the U.S. Securities and Exchange Commission.

"These inquiries are at a very early stage, and no one at Omega has been accused of any wrongdoing," Cooperman, chairman and CEO of Omega, wrote to his investors. "The firm is cooperating fully with both offices and is highly confident that it and its employees have at all times acted properly and lawfully and that the USAO and the SEC will come to the same conclusion."

A spokesman for the SEC declined to comment.

"It's the policy of our office to neither confirm nor deny the existence of any investigation," a spokesman for the U.S. Attorney's office in New Jersey said in an email.

Cooperman, who runs the $9.4 billion hedge fund Omega Advisors with his vice chairman Steven Einhorn, is one of the most respected players in the industry.

Cooperman said in his letter, dated March 24: "From the time I entered the securities business almost a half-century ago through the present day, I have been a great believer in detailed fundamental research."

He added: "We work hard to develop legitimate insights that are critical to fundamental research and take great care in our handling of any information we receive regarding the companies we cover."


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