{"id":42342,"date":"2014-05-29T09:28:53","date_gmt":"2014-05-29T13:28:53","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=42342"},"modified":"2014-05-29T09:34:39","modified_gmt":"2014-05-29T13:34:39","slug":"hedge-fund-manager-steven-cohens-case-delayed","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/05\/2014\/hedge-fund-manager-steven-cohens-case-delayed.html","title":{"rendered":"Hedge Fund Manager Steven Cohen’s Case Delayed"},"content":{"rendered":"

\"Cohen<\/a>New York (HedgeCo.Net) – People from US prosecutor Preet Bharara’s office have asked for a\u00a0extension on a stay that has been in place since August in the case against Steven Cohen, the NYT<\/a> reports.\u00a0<\/span>“Prosecutors want the proceeding stayed pending the outcome a closely watched appeal of the convictions of two former hedge fund managers, which could lead to new trials not only for them but potentially others convicted of insider trading.”<\/p>\n

The SEC\u2019s Division of Enforcement alleges that Cohen received highly suspicious information that should have caused any reasonable hedge fund manager to investigate the basis for trades made by two portfolio managers who reported to him \u2013 Mathew Martoma and Michael Steinberg.\u00a0 Cohen ignored the red flags and allowed Martoma and Steinberg to execute the trades.\u00a0 Instead of scrutinizing their conduct, Cohen praised Steinberg for his role in the suspicious trading and rewarded Martoma with a $9 million bonus for his work.\u00a0 Cohen\u2019s hedge funds earned profits and avoided losses of more than $275 million as a result of the illegal trades.<\/p>\n

\u201cHedge fund managers are responsible for exercising appropriate supervision over their employees to ensure that their firms comply with the securities laws,\u201d said Andrew J. Ceresney, Co-Director of the SEC\u2019s Division of Enforcement.\u00a0 \u201cAfter learning about red flags indicating potential insider trading by his employees, Steven Cohen allegedly failed to follow up to prevent violations of the law.\u00a0 In addition to the more than $615 million his firm has already agreed to pay for the alleged insider trading, the Enforcement Division is seeking to bar Cohen from overseeing investor funds.\u201d<\/p>\n

Six SAC employees have already been criminally charged with insider trading, and two of them have pleaded guilty. A SAC affiliate has agreed to pay $615 million to settle SEC charges. FBI Assistant Director George Venizelos said: “SAC Capital and its management fostered a culture of permissiveness. SAC not only tolerated cheating, it encouraged it.”<\/p>\n

Cohen himself has taken the 5th,\u00a0declining to testify before a grand jury.<\/p>\n

Alex Akesson
Editor for\u00a0HedgeCo.net<\/a>
alex@hedgeco.net<\/a>
HedgeCo.Net<\/a>\u00a0is a premier\u00a0hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – People from US prosecutor Preet Bharara’s office have asked for a\u00a0extension on a stay that has been in place since August in the case against Steven Cohen, the NYT reports.\u00a0“Prosecutors want the proceeding stayed pending the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-42342","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=42342"}],"version-history":[{"count":6,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42342\/revisions"}],"predecessor-version":[{"id":42349,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42342\/revisions\/42349"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=42342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=42342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=42342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}