Why Cooperman Isn’t Facing Criminal Charges: QuickTake Q&A

Leon Cooperman, the 73-year-old chairman of Omega Advisors Inc., was charged by the U.S. Securities and Exchange Commission with insider trading. The SEC alleges that the famed hedge fund investor used his status as a leading shareholder in Atlas Pipeline Partners to obtain confidential information from an Atlas executive and trade on it, making $4 million. Cooperman has denied wrongdoing. Omega, the SEC and the New Jersey U.S. Attorney’s office declined to comment.

The SEC filed a civil lawsuit against Cooperman and is seeking to ban him from the industry. Criminal cases must be brought by the U.S. Department of Justice, which in previous insider trading cases has often worked in tandem with the SEC.