SEC Files Charges Against Hedge Fund Founder Steven Cohen

SEC files charges against hedge fund founder Steven Cohen
Ronda Churchill/Bloomberg via Getty Images
WASHINGTON (AP) - The Securities and Exchange Commission has filed civil charges against Steven A.Cohen that accuse the billionaire hedge-fund manager of failing to prevent insider trading at the fund he founded.

Cohen founded and runs SAC Capital Advisors. The government has called the SAC Capital Advisors case one of the biggest insider-trading fraud cases in history.

The SEC said that as a result of illegal trades by Cohen's hedge funds, the funds reaped profits and avoided losses of more than $275 million. The SEC is seeking unspecified fines against Cohen. The case will be heard by an administrative law judge at the SEC.

Reuters adds:

The charges against billionaire hedge fund manager Steven A. Cohen have "no merit" and Cohen will fight them "vigorously," said a spokesman for Cohen's firm SAC Capital Advisors in a statement to the media on Friday.

The statement came in response to charges from the U.S. Securities and Exchange Commission that Cohen failed to supervise two employees who are accused of insider trading. (Reporting By Emily Flitter; Editing by Gerald E. McCormick)

On Twitter, ProPublica's Jesse Eisinger responds:

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When will the SEC file charges against speculators and big oil on the commodity market for controlling the price of crude/gas using lame excuses of "what if"? A house fly breaks wind in some "none oil" Country and the price of crude goes up. WAKE UP YOU SHEEP and take your Country back.

July 20 2013 at 6:54 AM Report abuse rate up rate down Reply