A Short List Of Things Steve Cohen Really Doesn’t Need Right Now

  • Calls from his guy at the Patagonia factory saying they’re backed up with orders right now the Point72 fleeces probably won’t get shipped ’til next Thursday
  • A message that his ex-wife was spotted on the property, and that she’s bypassed security and is heading for the trading floor
  • To be informed some little shit with a 12th birthday already rented the Super Duper Weenie truck for the weekend.
  • The news that yet another one of his employees was charged with insider trading

The Securities and Exchange Commission made a move today that suggests the government isn’t quite done investigating Steven Cohen’s giant hedge fund, SAC Capital, when it filed civil charges against another former employee for alleged insider trading. Ronald Dennis, a former analyst with SAC’s CR Intrinsic unit, was charged with trading in shares of Foundry Networks (BRCD) and Dell (DELL) in 2008 and 2009 based on inside information. The trades brought in $2.7 million in profits and avoided losses for SAC, according to the SEC. Dennis agreed to be barred from the securities industry and to pay $200,000 to settle the charges.

Oh, and that Steve is Portfolio Manager C, which is better than A, but nevertheless…

The SEC’s complaint lists a number of SAC employees with whom Dennis shared the information: “Portfolio Manager A,” whom Dennis worked for in 2008, and who, the SEC alleges, purchased 120,000 shares of Foundry stock for a CR Intrinsic portfolio after Dennis communicated intelligence he’d received from a company insider; “Portfolio Manager B,” whom Dennis started to report to in 2009 and who, along with Portfolio Manager A, traded Dell shares based on information Dennis received from an employee at Dell. Finally, there was “Portfolio Manager C,” at SAC Capital, who, the SEC alleges, earned profits of $1.1 million trading in Dell in August, 2009 after speaking with Portfolio Manager B, who had received information from Dennis.

According to people familiar with the matter, Portfolio Manager A is Alec Shutze, Dennis’s former boss at CR Intrinsic; Portfolio Manager B is Eric Gerster, who became Dennis’s boss after Shutze left the firm; and Portfolio Manager C is SAC founder Steven Cohen. Shutze could not be reached for comment. Gerster, reached Thursday afternoon, declined to comment. Cohen, through spokesman Jonathan Gasthalter, declined to comment.

Though, to be fair, it seems like SAC management had something of a hunch this was coming.

Gerster, according to a person familiar with the firm, became rattled after the arrest of Galleon Group co-founder Raj Rajaratnam in October 2009 and resigned from SAC shortly afterward, citing the stress that the high profile government investigation had caused him. Gerster sat for several hours of exit interviews that were referred to internally as a “deposition” with SAC’s lawyers at Willkie, Farr and Gallagher before he left the company, which was highly unusual, the person said.

Steven Cohen Identified in New Insider Trading Suit [BusinessWeek]

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20 Responses to “A Short List Of Things Steve Cohen Really Doesn’t Need Right Now”

  1. Typical says:

    Got a call from a headhunter about a legal position at SAC last week. I told him I’d much rather become an ambulance chaser than work for that cesspool.

    -Junior In-House Lawyer (About to become an ambulance chaser)

  2. ThatsWacc says:

    You know what I don't need right now? The editor and chief copy/paster of my once favourite website showing up to work at noon.

  3. guest says:

    How did that depo/exit interview go? "How many times did you insider trade while working here"?

    • Guest says:

      "I want you to listen to me. I'm going to say this again: I did not have insider information on that company, Dell. I never told anybody a lie, not a single time; never. These allegations are false. And I need to go back to work. Thank you."

  4. Guest says:

    Somewhere Dick Fuld and the Bear geniuses are drinking scotch and laughing at us all. None of this should surprise anyone.

    • reality quant says:

      Um, why would they be laughing at this? Cohen is still worth, like, 8 billion dollars, whereas they have mere millions and are unemployable.

      • Reed says:

        Well, they're not facing the threat of going to jail. Steve is. And they can afford all the good Scotch they want. And they don't have to prove anything to anyone anymore, ever. They have to love seeing him sweat.

  5. Guesss says:

    Is it presumed that Dennis plead guilty? He was charged today but already agreed to penalties for the charge? Am I missing something?

  6. Guest says:

    They are laughing because the govt wont rest till Stevie is in a cell. Notice a pattern here, the govt is like a dog with a bone, they are relentless

  7. Guest says:

    "became rattled after the arrest of Galleon Group co-founder Raj Rajaratnam in October 2009 .."

    why? because he felt bad for Raj or that returns on "edge trading" were about to include time too?

  8. Larry says:

    What's a dick fold?

  9. Guest says:

    Only those who have to fold their dick know larry, clearly you don't have that problem

  10. Guest says:

    Not that I have any sympathy, but it would just have to suck to get charged in 2014 for trades you made six freaking years earlier.

  11. Notice a pattern here, the govt is like a dog with a bone, they are relentless