U.S. investigators have subpoenaed a 2011 deposition of SAC
Capital Advisors LP founder Steven Cohen, whose sworn statements on
insider-trading compliance may hurt him as he tries to persuade regulators not
to file a lawsuit with the potential to shut his $14 billion firm., according to Bloomberg.
The SEC told the hedge fund Nov. 20 that it planned to sue
SAC for securities fraud and so-called control-person liability for failing to
supervise employees. The same day, the agency accused an ex-SAC portfolio manager
and his hedge-fund unit of insider trading for persuading Cohen, 56, to make
$700 million in illegal trades. Prosecutors also indicted the manager.
Cohen’s testimony, reviewed by Bloomberg News, establishes
his personal control over the unit, CR Intrinsic, and records his unfamiliarity
with his firm’s compliance and ethics policies on insider trading. “I’ve read the compliance manual, but I don’t remember
exactly what it says,” Cohen said.
Anyone in blogland surprised? We thought not….
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