Photo: New York magazine
Steve Cohen of SAC Capital was recently deposed by the SEC, Bloomberg Businessweek reports citing sources familiar with the matter.Cohen is one of the most successful traders in history, and the SEC has been looking into the conduct of him and his firm for years.
A couple of SAC Capital employees were busted for insider trading a couple of years ago in the “expert networks” scandal, but Cohen remained unscathed.
Now, it appears the SEC has found something to talk to him about.
Importantly, the fact that Cohen decided to testify suggests that the SEC probably does not have persuasive evidence against him. Cohen certainly would not go in and admit that he had traded with inside information, and he probably would also not testify if he thought he might have to lie under oath.
And it’s possible (though unlikely) that Cohen is merely being deposed as a witness to an investigation rather than a target.
But there was presumably much excitement in the SEC’s offices when Cohen showed up.
From Bloomberg Businessweek:
Cohen, 56, was recently deposed by Securities and Exchange Commission investigators in New York about trades made close to news such as mergers and earnings that generated profits at his hedge fund, said one of the people, who asked not to be identified because the investigation isn’t public.
Neither Cohen nor SAC has not been charged with any wrongdoing.