Steve Cohen Reportedly Used To Have SAC's Offices Checked For Government Listening Devices
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Matthew Goldstein and Alexandra Stevenson have an extensive article in Dealbook on why it's been difficult for the U.S. government to go after Steve Cohen, a.k.a. "The Big Guy."It's widely believed on Wall Street that Cohen, the founder of once $14 billion Stanford, Conn-based SAC Capital Advisors, is the ultimate target in the government's crackdown on insider trading.
Still, the government hasn't been able to accuse him of any wrongdoing. They might not ever be able to either.
For starters, Cohen is incredibly careful, according to Dealbook. He had SAC's offices checked for listening devices before the government's insider trading investigation was revealed. He also suspected that phone calls were being taped, too, the report said citing unnamed sources.
From Dealbook:
Since August 2009, U.S. Attorney Preet Bharara has successfully convicted 79 people, including a handful of SAC Capital alums, on insider trading charges.
In the case against former SAC portfolio manager Mathew Martoma, Cohen was identified as "Portfolio Manager A." It was also revealed at Cohen and Martoma had a 20 minute conversation on the phone on a Sunday before the fund exited its positions in drug companies Elan and Wyeth.
It's unclear what was said during that conversation. We may never know what was said either. Martoma refused to cooperate with the prosecution.
Cohen, who was absent during Martoma's trial, has not been charged with any wrongdoing. In fact, Cohen may never be charged at all. He has also said he is confident he acted appropriately.
SAC Capital was criminally indicted last summer on insider trading charges.In November, SAC pleaded guilty to criminal insider trading charges and agreed to pay a $1.8 billion fine.
Since then, two of SAC's former traders Michael Steinberg and Mathew Martoma were found guilty recently in separate insider trading cases.
In the future, SAC Capital will no longer manage outside capital. Instead, it will operate as a family office fund managing about $9 billion of Cohen's personal wealth and the money of other employees.