The Hunt for Steve Cohen (Insider Trading)

[Benton D Struckcheon]

http://www.vanityfair.com/business/2013/06/steve-cohen-insider-trading-case

With arrest after arrest in a massive, seven-year insider-trading investigation, U.S. Attorney Preet Bharara is getting closer to the biggest fish of them all: Steve Cohen, founder of SAC Capital, the $14 billion hedge fund, who some regard as the most successful stock picker of his time. C.E.O.’s have fallen, lives and companies have been upturned, but Cohen has thus far escaped. Bryan Burrough and Bethany McLean go deep inside Bharara’s probe—and SAC’s org chart—to reveal just how much blood is in Wall Street’s waters.

Excellent article. Seems it all turns now on whether they can get this one guy they arrested last year to talk. So far, no go.

[warrant46]

1. How to get away with it

On Friday afternoon July 19, 2013 the Security and Exchange Commission charged hedge fund titan Steven A. Cohen with "Failing to Supervise Portfolio Managers and Prevent Insider Trading." If the charges stand, Cohen could be barred from the securities industry.

Though he'd certainly prefer to have had the issue dismissed entirely, given the scope of the investigation being charged with failure to supervise can only be considered a triumph for Cohen and SAC Capital Advisors. As one Twitter wag put it, the accusation was akin to "charging Lance Armstrong with failure to stop a needle from piercing his skin."