Cohen’s SAC Career Faces End as SEC Presses Supervision
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Billionaire hedge-fund manager Steven A. Cohen faces an attempt by U.S. regulators to force him out of business for failing to supervise two employees charged with insider trading.
The Securities and Exchange Commission yesterday presented new details that it said showed Cohen received “highly suspicious” information that should have caused any reasonable hedge-fund manager to investigate the basis for trades made by Mathew Martoma and Michael Steinberg. Cohen, 57, ignored red flags and allowed illegal trades that earned profits and avoided losses of more than $275 million, the SEC said in an administrative proceeding.