Friday, July 19, 2013

Full Text Of SEC Charges Against Steven Cohen

From the SEC press release, "SEC Charges Steven A. Cohen With Failing to Supervise Portfolio Managers and Prevent Insider Trading:"

Washington D.C., July 19, 2013 — The Securities and Exchange Commission today announced charges against hedge fund adviser Steven A. Cohen for failing to supervise two senior employees and prevent them from insider trading under his watch.

The SEC’s Division of Enforcement alleges that Cohen received highly suspicious information that should have caused any reasonable hedge fund manager to investigate the basis for trades made by two portfolio managers who reported to him – Mathew Martoma and Michael Steinberg. Cohen ignored the red flags and allowed Martoma and Steinberg to execute the trades. Instead of scrutinizing their conduct, Cohen praised Steinberg for his role in the suspicious trading and rewarded Martoma with a $9 million bonus for his work. Cohen’s hedge funds earned profits and avoided losses of more than $275 million as a result of the illegal trades.
Full text of SEC Administraive Proceeding Order instituting proceedings against Steven A Cohen below and on SEC site. USDOJ insider trading criminal charges against SAC are here.

Steven a Cohen SEC Administrative Hearing Order

No comments:

Post a Comment