Tags: hedge fund | Steven A. Cohen | SAC Capital | insider trading

Prosecutors Ask SEC to Delay Proceedings Against Cohen

Wednesday, 27 August 2014 01:25 PM

U.S. prosecutors asked the Securities and Exchange Commission to delay its administrative proceeding against billionaire Steven A. Cohen for a second time because criminal cases against his former employees are continuing.

The U.S. Attorney’s Office for the Southern District of New York said their pending cases overlap with the SEC’s civil allegations against Cohen, according to a letter dated Tuesday to Brenda Murray, an SEC administrative law judge.

The SEC has said that Cohen, who ran SAC Capital Advisors LP, failed to supervise employees to ensure they complied with securities laws. Prosecutors in May asked an SEC judge to delay Cohen’s case until insider-trading matters against former SAC money managers Mathew Martoma and Michael Steinberg are resolved.

Martoma was convicted in February of securities fraud and is scheduled to be sentenced on Sept. 8. Steinberg, who was sentenced to three-and-a-half years in prison earlier this year, is appealing his conviction, Preet Bharara, the U.S. attorney in Manhattan, said in his letter to Murray.

SAC this year paid a record $1.8 billion to settle government allegations of insider trading. Jonathan Gasthalter, a spokesman for the Stamford, Connecticut-based firm with Sard Verbinnen & Co., declined to comment.

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hedge fund, Steven A. Cohen, SAC Capital, insider trading
Wednesday, 27 August 2014 01:25 PM
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