Mon, Aug 05, 2013 - Page 15 News List

SAC head Steven Cohen wants SEC investigation file

Bloomberg

Steven Cohen, the billionaire founder of hedge fund firm SAC Capital Advisors LP, does not oppose a request to delay the US Securities and Exchange Commission (SEC) action against him provided that he is given prompt access to the agency’s investigative records.

Cohen’s lawyers, in a response filed on Friday in administrative court in Washington, said they would have “insufficient time” to review the SEC’s documents adequately before the proceeding if they are not produced until the stay is lifted.

Manhattan US Attorney Preet Bharara asked on July 26 to delay the SEC’s case until related criminal matters against Cohen’s firm and two former employees were resolved.

“The pendency of related criminal proceedings should not serve as a reason to delay the production of the SEC’s investigative file in this proceeding,” Cohen’s attorneys wrote in the filing.

While there is “undoubtedly some overlap” in the civil and criminal investigative files, the SEC has indicated it has as much as five times the amount of data as federal prosecutors, Cohen’s lawyers said.

Bharara in July announced criminal charges against SAC Capital, calling it “a veritable magnet for market cheaters.”

The SEC accused Cohen of failing to supervise two former employees currently facing criminal charges that they traded on non-public information.

The SEC’s chief administrative law judge, Brenda Murray, had scheduled an initial hearing in Cohen’s matter for Aug. 26.

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