The Securities and Exchange Commission claimed in a July 19 civil action that SAC Capital Advisors founder Steven A. Cohen “failed reasonably to supervise two of his senior employees,” who are accused of engaging in insider trading.
The filing, which differs from a lawsuit brought in federal court, represents the first time Cohen has been formally implicated by the federal government in connection with allegations of insider trading against two former SAC Capital employees, Mathew Martoma and Michael Steinberg.
In an administrative proceeding, the SEC will seek to prove that Cohen, as head of the Stamford hedge fund, failed to supervise Martoma and Steinberg and to prevent them from allegedly making trades on nonpublic information under his watch.
A spokesman for the Stamford hedge fund told the New York Times that Cohen “acted appropriately at all times and will fight this charge vigorously,” and cited SAC Capital’s “extensive compliance policies and procedures.”
Cohen, if found guilty of the alleged violations, could face financial penalties, disbarment from the financial services industry or other penalties, according to the SEC.
Martoma and Steinberg, both former portfolio managers with SAC Capital, have each pleaded not guilty to criminal insider trading charges in cases that are scheduled to be tried in November.
Eating coconut oil provides energy like a carbohydrate without having the blood sugar impact
that carbs normally do. Needless to say, coconut oil’s abundant supply of soluble fiber is exceptionally effective in treating constipation, but if you take an overdose of it, it can be too smooth for your comfort. Virgin coconut oil is fresh-pressed from coconut meat.