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Steven Cohen Identified in New Insider Trading Suit

Another insider trading link to hedge fund chief Cohen

After Steven Cohen’s hedge fund SAC Capital Advisors pleaded guilty to charges that it was engaged in firmwide securities fraud in November, it looked as if the multiyear, multiagency investigation, which led to insider trading charges against eight former employees, was winding down. Then on March 13, the Securities and Exchange Commission filed civil charges against yet another former SAC employee for alleged insider trading, a move that suggests the government isn’t quite done scrutinizing Cohen and his company.

Ronald Dennis, a former analyst with CR Intrinsic Investors, an SAC unit, was charged with trading shares of Foundry Networks and Dell in 2008 and 2009 based on illegally obtained information. The trades brought in $3.8 million in profits and avoided losses for SAC and CR Intrinsic, according to the SEC. Dennis agreed to be barred permanently from the securities industry and to pay $200,000 to settle the charges.