SEC Sues SAC’s Cohen

    At the nonprofit "Mercy Corps Action Center to End World Hunger," in Battery Park this week, two illustrious Steve Cohen's joined forces to support the charity's global work.  Magician Steve Cohen (at left) performed his highly acclaimed Chamber Magic show for an audience of business and community leaders, actors, fashion designers, and other luminaries, including billionaire Steven A. Cohen (Founder, SAC Capital) and his wife Alexandra.  Photo by Jenny Boyle for Jennifer Davis Photography.  (PRNewsFoto/Peppe Communications)


    In the latest step of a long-running investigation, the Securities and Exchange Commission has sued Steven Cohen, the controversial proprietor of giant hedge fund SAC Capital, with failure to supervise employees. In recent years, federal authorities have nailed several SAC employees and affiliates for insider trading, but the SEC hasn’t been able to implicate Cohen directly to the trades. The “failure to supervise” is a less severe charge; basically, it says that as the boss and the adult in the room, Cohen should have realized his employees were doing something fishy on certain trades. Cohen has 20 days formally to answer the charges.

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