SEC Sues SAC’s Cohen

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.