Reuters/ Steve MarcusFolks are wondering if the government is going to get billionaire hedge fund manager Steve Cohen.
The New York Times‘ Ben Protess and Peter Lattman reported that Cohen received a subpoena last week to testify before a grand jury in an insider trading case against his hedge fund.
This action from the feds could be viewed as a signal that the government is ramping up its efforts in building a case against Cohen and his hedge fund, the report said.
It’s widely known that Cohen, who runs $14 billion Stamford, Connecticut-based SAC Capital, is the ultimate target of the Securities and Exchange Commission and the Department of Justice.
In the insider trading case against former SAC portfolio manager Mathew Martoma, Cohen has been identified as “Portfolio Manager A.” While he has been implicated, he has not been charged with any wrongdoing. He may never be charged. He also said he is confident he acted appropriately.
All Cohen has to do is make it through the end of July.
Because of the statute of limitations.
In this particular case against Martoma, the complaints allege that the insider trading scheme involved information in pharmaceutical companies, Elan Corporation and Wyeth, between the summer 2006 and mid-July 2008.
Under the statute of limitations for insider trading, if the government were going to bring additional charges in this case they would have to do so by mid-July, which is the five year anniversary of the trade.
So if the government doesn’t file any additional charges by that time, Cohen can really relax and enjoy himself that $60 million Hamptons summer home he just bought.