It won't be any surprise to faithful Weird readers (all three of you) that for years, federal investigators have doggedly pursued one
Steven A. Cohen — he of the Greenwich mansion, pickled shark, and collection of
Dutch Masters — over suspicions that his hedge fund, SAC Capital, was a
festering morass of illegal insider trading NY Magazine reports.
Six of SAC's current or former employees have been directly
tied to insider trading, but Cohen himself has largely avoided becoming
directly enmeshed in the scandal. For that, he can thank the famously webby
structure of SAC Capital — which functions as a sort of loose federation of
smaller hedge funds, all overseen by Cohen but directly managed by individual
PMs. With so many traders each running their own mini-funds under the SAC
umbrella, after all, how is Cohen supposed to keep track of every trade?
Well, now it appears that Cohen's plausable deniability
window is shrinking. He is being accused, for the first time, of direct
involvement in an illicit trading scheme — a scheme allegedly run by former SAC
Capital trader Mathew Martoma that netted $276 million for the firm, which the
SEC is calling “the most lucrative insider trading scheme ever….."
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