Photo: Vanity Fair
Steve Cohen’s ex-wife’s lawsuit against him is back, with a lot less oomph.Patricia Cohen has given up the hope of taking control of all of SAC Capital, her husbands company, and is now demanding only $2.7 million.
But her embarrassing claims of evidence of Cohen’s insider trading are still included in detail in the suit, and they describe Cohen’s club-like activity at business school, including how his group of friends ran in a circle they called, “The Wharton Mafia.”
Most of the main points are the same as the other lawsuits she’s filed in this long saga, but now they’re filed within a better, more coherent claim against the SAC hedge fund manager.
There is also full explanation of how Cohen allegedly engaged in insider trading in the 1980s.
From the lawsuit, which her lawyer, Howard Foster, sent us:
In 1985 Steven was informed of the imminent acquisition of RCA Co. by General
Electric Co. by Bruce Newberg, a securities trader at Drexel Burnham Lambert.
Mr. Newberg provided the information to Steven in furtherance of their long-standing
friendship which began at Wharton Business School. Mr. Newberg also hoped to
enhance his standing with Steven, who was by then an up and coming trader on Wall
Steven knew that Mr. Newberg had obtained the information from Dennis Levine, one of
Newberg’s superiors at Drexel Burnham Lambert, and that Mr. Levine had been provided
with the information from an RCA insider. Such privileged information was provided to
Steven as part of his relationship with Mr. Newberg and as part of an effort to “take care
of one another.”
The arrangement to “take care of one another” was apparently part of the special treatment Steve Cohen and his Wharton friends had been giving each other since business school, where they called themselves, The Wharton Mafia.
They sometimes referred to their group of Wharton friends as “the
The insider trading claim continues:
Steven passed on the inside information to Donald and colleagues at Gruntal.
While in possession of the material, non-public information from Mr. Newberg, Steven
and Donald each purchased RCA stock with the intent of profiting from the inside