I was reading Intelligencer this morning and thought you might find this article interesting. They wrote the below, I added some paragraph breaks to make it easier to read on this blog.
In the 2010s, the then–U.S. Attorney in Manhattan, Preet Bharara (now a podcaster for New York’s parent company), built a case that SAC was trading on inside information. One portfolio manager went to prison for enticing a doctor to leak the disappointing results of a study of a biotech company’s Alzheimer’s drug — information he used to make trades. According to evidence in the legal proceedings, Cohen suddenly switched his position in the company from long to short after talking to the portfolio manager.
He was not prosecuted, but SAC as a company pleaded guilty to federal securities- and wire-fraud charges, accepting a record $1.8 billion fine.
The Securities and Exchange Commission charged Cohen in a related civil case, which he told me was “aggressive,” considering that the worst thing the government could prove after so much investigation was that his employee had committed crimes. “I ended up getting a ‘failure to supervise,’” Cohen told me. “I would call that a misdemeanor.”
Cohen settled with the SEC, agreeing to a ban that temporarily prohibited him from managing external capital. He continued to invest his personal wealth and, after a few years, was able to start anew with Point72
In another section they mention
On opening day, Cohen invited a bunch of Queens politicians who had a say on the casino out to the ballpark. He took a selfie by home plate with Borough President Donovan Richards and City Councilman Francisco Moya. State Senator Jessica Ramos, an outspoken young progressive who grew up in Astoria, was also there for the festivities. “As a Mets fan,” she told me of Cohen’s investment in the team, “who couldn’t be happy?”
Anyway, it’s a very interesting read if you want to check it out.
