Steve Cohen has always been somewhat nostalgic about the days before email and instant messaging.
Last week he pondered the good old days with Paul Tudor Jones, declaring “tape reading is a lost art” and musing about how great the 90s were.
We’re not sure how much Steve’s influenced has trickled down into his legal team, but they’re not that enamoured with modern communicative devices either.
Apparently, “SAC Capital’s legal team actively discourages traders and analysts from using email, instant messages and other forms of communication that can leave a paper trail,” Reuters reported in a story about why Steve Cohen is the FBI’s Moby Dick (aka — why they’ll never nab him for insider trading).
They’re on to something, really. Online locales are the worst place to discuss priority information — there’s a ton of people who can attest to that.
“The lack of email documentation at SAC Capital is something that has frustrated litigants over the years, according to people who have been involved in lawsuits and arbitrations with the fund,” the article says.
It’s obviously a tactic that does its job: besties Noah Freeman and Don Longueuil — the two former SAC employees that have been indicted on insider trading charges — would only use their personal email accounts, and only on non-office computers, to talk about inside information.
(Though Cohen may have been impressed with the old-school way Don Long tried to dump evidence of alleged fraud).
And SAC, despite Freeman and Longueuil’s alleged involvement (and FBI subpoenas in the hands of a whole crew of SAC alumni), remains to be accused of any wrongdoing.
What’s kind of ironic is that despite the legal team’s preference, Stevie himself keeps an incredible off-site emergency data centre in Connecticut just in case anything ever goes wrong, and the precious investor paper trail is threatened.
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