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.
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:
So the SEC charges Stevie Cohen with failure to supervise, but couldn't find any Wall St. execs who failed similarly during fin'l crisis.- Jesse Eisinger (@eisingerj) July 19, 2013