M*****8
发帖数: 17722 | 2
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http://www.zerohedge.com/news/2013-07-19/sec-sues-steve-cohen-f
http://forbesindia.com/article/close-range/sec-promises-scrutin
will-continue/25032/1
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FOR IMMEDIATE RELEASE
2013-129
Washington D.C., July 19, 2013 —
The Securities and Exchange Commission today announced charges against hedge
fund adviser Steven A. Cohen for failing to supervise two senior employees
and prevent them from insider trading under his watch.
The SEC’s Division of Enforcement alleges that Cohen received highly
suspicious information that should have caused any reasonable hedge fund
manager to investigate the basis for trades made by two portfolio managers
who reported to him – Mathew Martoma and Michael Steinberg. Cohen ignored
the red flags and allowed Martoma and Steinberg to execute the trades.
Instead of scrutinizing their conduct, Cohen praised Steinberg for his role
in the suspicious trading and rewarded Martoma with a $9 million bonus for
his work. Cohen’s hedge funds earned profits and avoided losses of more
than $275 million as a result of the illegal trades.
“Hedge fund managers are responsible for exercising appropriate supervision
over their employees to ensure that their firms comply with the securities
laws,” said Andrew J. Ceresney, Co-Director of the SEC’s Division of
Enforcement. “After learning about red flags indicating potential insider
trading by his employees, Steven Cohen allegedly failed to follow up to
prevent violations of the law. In addition to the more than $615 million
his firm has already agreed to pay for the alleged insider trading, the
Enforcement Division is seeking to bar Cohen from overseeing investor funds.”
According to the SEC’s order instituting administrative proceedings against
Cohen, portfolio managers Martoma and Steinberg obtained material non-
public information about publicly traded companies in 2008, and they traded
on the basis of that information. The SEC charged Martoma and his tipper
with insider trading in an enforcement action last year, and charged
Steinberg with insider trading in a complaint filed earlier this year. In
connection with those cases, CR Intrinsic, an affiliate of Cohen’s firm S.A
.C. Capital Advisors, agreed to pay more than $600 million in the largest-
ever insider trading settlement. Another Cohen affiliate, Sigma Capital,
agreed to pay nearly $14 million to settle insider trading charges.
The SEC’s investigation found that in his supervisory role, Cohen oversaw
trading by Martoma and Steinberg and required them to update him on their
stock trading and convey the reasons for their trades. On at least two
separate occasions in 2008, they provided information to Cohen indicating
their potential access to inside information to support their trading.
However, Cohen stood by on both occasions instead of ascertaining whether
insider trading was taking place.
According to the SEC’s order, Cohen watched Martoma build a massive long
position in the stock of two pharmaceutical companies – Elan and Wyeth –
based on their joint clinical trial of a drug with the potential to treat
Alzheimer’s disease. Cohen allowed this despite repeated e-mails and
instant messages to Cohen from other analysts at CR Intrinsic advocating
against it. The analysts questioned whether Martoma possessed undisclosed
data on the results of the trial. Cohen responded by saying it was “tough
” to know whether Martoma knew something, but that he would follow Martoma
’s advice because he was “closer to it than you.” In later exchanges of
instant messages, Cohen further remarked that it “seems like mat [Martoma]
has a lot of good relationships in this arena.” Cohen also was told about
a doctor who had provided his portfolio managers with potentially non-public
information about the clinical trial, but failed to express any concern
about the use of that information. During his e-mail exchanges, Cohen
displayed no concern that Martoma might possess non-public information or
about his use of such information to inform investment decisions at his firm
. Instead, Cohen encouraged Martoma to talk further with a doctor familiar
with the clinical trial.
The SEC’s Enforcement Division alleges that after months of building up the
massive position and being bullish on both Elan and Wyeth, Martoma had a 20
-minute phone conversation with Cohen on July 20, 2008. According to Cohen,
Martoma said that he was no longer comfortable with the Elan investments
that CR Intrinsic and SAC held. Despite Martoma’s abrupt change in view
and red flags that he likely received confidential information about the
clinical trials from a tipper, Cohen failed to take prompt action to
determine whether an employee under his supervision was violating insider
trading laws. Starting the next morning, Cohen oversaw the liquidation of
his and Martoma’s positions in Elan and Wyeth and the accumulation of a
short position instead.
According to the SEC’s order, Cohen also supervised Steinberg while he was
involved in insider trading of Dell securities in August 2008. After being
looped into a highly suspicious e-mail between Steinberg and other firm
employees reflecting the clear possibility that they possessed material non-
public information about an upcoming earnings announcement at Dell, Cohen
again failed to take prompt action to determine whether Steinberg was
engaged in unlawful insider trading. Instead, Cohen liquidated his Dell
shares based on the recommendation of Steinberg, who continued short selling
Dell shares in his Sigma Capital portfolio based on the confidential
information. Dell’s stock price dropped sharply after its August 28
earnings announcement, and funds managed by Cohen’s firms profited or
avoided losses totaling at least $1.7 million. Three hours after the
earnings announcement, Cohen e-mailed Steinberg: “Nice job on Dell.”
The SEC’s Division of Enforcement alleges that by engaging in the conduct
described in the SEC’s order, Cohen failed reasonably to supervise Martoma
and Steinberg with a view to preventing their violations of Section 10(b) of
the Exchange Act and Rule 10b-5 thereunder. The administrative proceedings
will determine what relief is in the public interest against Cohen,
including financial penalties, a supervisory and financial services industry
bar, and other relief.
The SEC’s investigation, which is continuing, has been conducted by Joseph
Sansone, Charles Riely, and Daniel Marcus of the Market Abuse Unit in New
York as well as Amelia Cottrell, Matthew Watkins, Justin Smith, Neil
Hendelman, Diego Brucculeri, and James D’Avino of the New York Regional
Office. The SEC’s litigation effort will be led by Matthew Solomon and
Preethi Krishnamurthy. The case has been supervised by Sanjay Wadhwa.
http://www.mitbbs.com/article_t/Military/39983593.html
【在 M*****8 的大作中提到】
: 阿Q死命舔盗徒并且倒贴，老印直接挑战。
: 前者洋奴犯贱料子。后者直捣食物链顶层。
: 我早说过了，唯一无畏敢挑战盗徒的是老印。
: http://en.wikipedia.org/wiki/Preet_Bharara
: http://dealbook.nytimes.com/2013/07/19/s-e-c-files-civil-case-a
: http://www.mitbbs.com/article_t/Military/39983593.html
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