How Many Rotting Apples Do Our Hedges Hide?
Sunday, 26 May 2013 11:41 By Sam Pizzigati, Inequality.org | News Analysis
They’re hunkering down at SAC Capital, the hedge fund empire billionaire Steven Cohen has spent over two decades building. Federal prosecutors have been picking off SAC’s current and former second bananas one by one, plea bargaining for information that brings them ever closer to Cohen.
This past March SAC coughed up $616 million, without admitting guilt, to settle a federal civil suit charging the hedge fund with insider trading. A defiant Cohen then went out and plopped down $155 million for a Picasso and $60 million more for a new Hamptons manse, just to show how little he’d miss the $616 million.
Now the feds are chasing Cohen on criminal charges, and SAC has announced the hedge fund will no longer cooperate — on an “unconditional” basis — with government requests for information.