Stevie Cohen gets off for $614M

Winners bring a bigger bag than you do. I have a degree in meritocracy.

yeahright

11y

Financier4Hire:
Highest ever HF payout I've heard.

Not really considering inflation. Honestly probably better for both parties. Jail time would have been a lesser fine thus less money for the SEC, still kind of bullshit though to just pay their way out of things.

Frank Sinatra - "Alcohol may be man's worst enemy, but the bible says love your enemy."

BTbanker

11y

Don't forget about people redeeming their funds, not only from this, but from the shit returns that are about to come from "honest security analysis". We're about to find out if there's any real talent at SAC.

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trazer985

11y

anyone else starting to look real suspicious at the people that "compete" with someone that's meant to be a market genius and an insider?

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BlackHat

11y

I thought it was mutually understood that SAC was allowed to insider trade? Only way to justify those fees right?

I hate victims who respect their executioners

Gray Fox

11y

Poor Steve Cohen, he might have to sell a few paintings. The SEC wanted him so so bad but went after him in civil court because they knew they didn't have enough evidence to go after him criminally and Martoma won't turn.

The man made 1.5bn last year. Is there anybody here who wouldn't give up 40% of their annual earnings to pass on 10 years of jail?

Statue of limitations on insider trading is 5 years. SAC's returns the last 5-7 years have been decent, but net of 3/50 not so much. My guess is that the place has been clean for some time now. I'm calling the family office route in 2-3 years tops. If he does 12% a year for the next 12 years he'll have 30-40bn. He should be able to retire comfortably based on that.

Authored by: Certified Hedge Fund Professional - 3rd+ Year AnalystCertified Hedge Fund Pro

BlackHat

11y

Gray Fox:
Poor Steve Cohen, he might have to sell a few paintings. The SEC wanted him so so bad but went after him in civil court because they knew they didn't have enough evidence to go after him criminally and Martoma won't turn.
The man made 1.5bn last year. Is there anybody here who wouldn't give up 40% of their annual earnings to pass on 10 years of jail?

Statue of limitations on insider trading is 5 years. SAC's returns the last 5-7 years have been decent, but net of 3/50 not so much. My guess is that the place has been clean for some time now. I'm calling the family office route in 2-3 years tops. If he does 12% a year for the next 12 years he'll have 30-40bn. He should be able to retire comfortably based on that.

You sure that's enough of a nest egg to take care of that forehead?

I hate victims who respect their executioners

SirTradesaLot

11y

You would think that if you had this much money you might be able to find a way to avoid looking like Darth Vader sans helmet.

whatwhatwhat

11y

stevie looks like he wouldn't hesitate to shank someone in prison definitely would rather have him have my back than madoff

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freemarketeer

11y

whatwhatwhat:
stevie looks like he wouldn't hesitate to shank someone in prison definitely would rather have him have my back than madoff

Guarantee he had a Kevlar fleece made in preparation.

http://www.cnbc.com/id/100900200

Authored by: Certified Corporate Development Professional - 1st Year AnalystCertified Corporate Development Pro

NorthSider

Mentor

11y

Best Response

Steven Cohen Charged in SAC Fiasco (Originally Posted: 07/19/2013)

Surprised this hasn't made the rounds on here yet. I'll let the article speak for itself.

Steven Cohen's long personal immunity to accusations of insider trading that have circled his hedge fund and former employees has come to an end.
The Securities and Exchange Commission announced Friday that Cohen would have to answer to civil claims that he failed to "reasonably supervise" two senior people at SAC Capital who have been accused of engaging in criminal insider trading. Cohen's case is not, however, criminal and the SEC doesn't accuse him of engaging in insider trading.

Instead Cohen will be accused in an administrative hearing of failing to supervise the wrong doers. Penalties, if any, would be determined through the administrative hearing. The SEC said they could include fines and a bar from the securities industry, which could mean the end for SAC Capital. Alternatively, Cohen could be forced to close his fund to outside investors. He and fellow SAC employees have about $9 billion in the fund.

"Both portfolio managers provided information to Cohen indicating that they may have had access to inside information to support their trading," the SEC said in a statement. "In each case, Cohen received highly suspicious information that should have caused any reasonable hedge fund manager in Cohen's position to take prompt action to determine whether employees under his supervision were engaged in unlawful conduct and to prevent violations of the federal securities laws. Cohen failed to take reasonable steps to investigate and prevent such violations."

...

The SAC team had some harsh words for how the media is handling the case.

"The press speculates about a lot of things in this case, but one of the possibilities that the press doesn't engage in is the possibility that Steve Cohen didn't do anything wrong. We believe the evidence will show he did nothing wrong," said Dan Kramer, an attorney for SAC Capital.

...

Securities attorney Andrew Stoltmann said the SEC charges were disappointing. "This was the easiest step for the SEC to take," he added. "The Commission gets the big headline that they wanted but it is a tacit acknowledgement it couldn't make a criminal case against Cohen."

Let the lambasting ensue.

"For all the tribulations in our lives, for all the troubles that remain in the world, the decline of violence is an accomplishment we can savor, and an impetus to cherish the forces of civilization and enlightenment that made it possible."

Will Hunting

11y

Steve to the SEC: "LOL"

"Look, you're my best friend, so don't take this the wrong way. In twenty years, if you're still livin' here, comin' over to my house to watch the Patriots games, still workin' construction, I'll fuckin' kill you. That's not a threat, that's a fact.

Will Hunting

11y

Seriously though, when I read the account about him selling ALL of his Dell shares right after receiving that email from a guy who has been convicted of insider trading a few days before Dell's earnings announcement, I lol'ed. It makes it even better than he had just purchased the shares earlier in the week.

Edit: This is what I read...no idea if it's true but hilarious nonetheless.

leveredarb

11y

i rly hope they get him hes such a scumbag

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DyingScreams

11y

The homie will be fine.

What's a few hunna million to a baller?

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notthehospitalER

11y

Think it's kinda funny that they've been working on this case for ~10 years (to my knowledge- correct me if I'm wrong) and this is what they could come up with against him- either he's innocent or incredible at insulating himself. Pretty commendable (if unethical) either way. Also amuses me that although they talk about barring him from the industry as a potential consequence, under current laws he would still be allowed to run a "family office" and manage his billions, presumably without other restrictions.

See my WSO Blog

Markov

11y

My theory is that he's come up with a very simple way to make sure insider trading happens, and also to insulate himself.

He's known for taking away half of his PMs capital the first time they lose money over a quarter or two, and firing them the second time, and also firing them if their performance isn't consistently spectacular. This is brutal. Really brutal. Even solid PMs can't pull off the sort of performance he demands on a regular basis. So, I suspect, they engage in insider trading, because if they don't they're fired. And then they pass on their "best ideas" to him, without explicitly revealing to him their tainted sources for the ideas.

If this is what's going on, then Cohen never has to know about the insider trading, and is (almost) fully insulated, but still reaps all the rewards of his subordinates illicit behavior.

Authored by: Certified Hedge Fund Professional - 3rd+ Year AnalystCertified Hedge Fund Pro

DyingScreams

11y

Markov:

My theory is that he's come up with a very simple way to make sure insider trading happens.

He's known for taking away half of his PMs capital the first time they lose money over a quarter or two, and firing them the second time, and also them if their performance isn't consistently spectacular. This is brutal. Really brutal. Even solid PMs can't pull off the sort of performance he demands on a regular basis. So, I suspect, they engage in insider trading, because if they don't they're fired. And then they pass on their "best ideas" to him, without explicitly revealing to him their tainted sources for the ideas.

If this is what's going on, then Cohen never has to know about the insider trading, and is (almost) fully insulated, but still reaps all the rewards of his subordinates illicit behavior.

Sounds like a fucking boss, a particularly harsh one at that.

RustyFork

11y

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