March 30 (Bloomberg) -- SAC Capital Advisors LP founder Steven A. Cohen won’t have to face his ex-wife’s lawsuit accusing him of cheating her out of money in their 1990 divorce, a judge said.
U.S. District Richard Holwell in New York today dismissed Patricia Cohen’s lawsuit, ruling she took too long to bring the case filed in 2009. The judge said Cohen made similar claims in a 1991 lawsuit in which she accused her ex-husband of hiding assets and misrepresenting the value of his investments.
Patricia Cohen also said in her lawsuit that hedge fund SAC Capital was “the product of an ongoing racketeering scheme” that has engaged in insider trading, bank fraud, money laundering and other misconduct.
“By 1985 Steven had become a very successful trader, but the Cohen’s marriage was far from a success,” Holwell said in his ruling. “This is a case where, some twenty years ago, Patricia alleged the same kind of fraud -- hiding assets -- by the same person -- Steven --in the same negotiations at the same time.”
The judge barred Patricia Cohen from re-filing her complaint.
“Here, where Patricia believed that Steven was defrauding her and had essentially alleged that he was a ‘scoundrel,’ she should have perceived a need to determine the verity of his affidavits” in the divorce case about his net worth and business deals he claimed were worthless, Holwell said.
Patricia Cohen also claimed she was entitled to at least half of his business, saying it was developed in part with $1 million that she earned from a real estate business.
“As we have said from the outset, the allegations by Mr. Cohen’s former spouse were without merit,” Jonathan Gasthalter, a spokesman for Stamford, Connecticut-based SAC Capital, said in a phone interview. “We are pleased that the case has been dismissed.”
Howard Foster, a lawyer for Patricia Cohen, didn’t immediately return a voice-mail message seeking comment.
Cohen, 54, started SAC in 1992 with about $25 million and the firm now has about $14 billion under management.
Steven Cohen said the couple had $17 million in marital assets in the divorce, and Patricia Cohen accepted a $3.5 million settlement, $2.5 million of which was an apartment, according to the complaint.
“Only three weeks after their second round of divorce proceedings had concluded in 1992, Steve reassembled SAC Trading” under “SAC Capital and other entities, with some newfound $25 million,” according to Patricia Cohen’s complaint.
The case is Cohen v. Cohen, 09-cv-10230, U.S. District Court, Southern District of New York (Manhattan).
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