• 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]

20 comments (hidden to protect delicate sensibilities)
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Comments (20)

  1. Posted by Typical | March 14, 2014 at 1:27 PM

    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. Posted by ThatsWacc | March 14, 2014 at 1:29 PM

    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. Posted by guest | March 14, 2014 at 1:29 PM

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

  4. Posted by guest | March 14, 2014 at 1:30 PM

    settle down toots.

  5. Posted by guest | March 14, 2014 at 1:30 PM

    I'm fine with that SO LONG AS we get a recap of last night.

  6. Posted by guest | March 14, 2014 at 1:32 PM

    eh, i'm fine w the chief copy/paster (shazar) showing up at 4 so long as the editor (bess) is here at 6am sharp.

    -needy guest

  7. Posted by Guest | March 14, 2014 at 1:32 PM

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

  8. Posted by reality quant | March 14, 2014 at 1:35 PM

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

  9. Posted by Guesss | March 14, 2014 at 1:36 PM

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

  10. Posted by guest | March 14, 2014 at 1:37 PM

    yes, yes, no.

  11. Posted by Guest | March 14, 2014 at 1:37 PM

    "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."

  12. Posted by Guesss | March 14, 2014 at 1:40 PM

    then he is going to be singing like a bird about portfolio manager A, B and C?

  13. Posted by Guest | March 14, 2014 at 1:44 PM

    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

  14. Posted by Guest | March 14, 2014 at 1:44 PM

    "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?

  15. Posted by Martoma | March 14, 2014 at 2:16 PM

    I know a lot about the legal system and SAC – where can I send my resume?

  16. Posted by Larry | March 14, 2014 at 2:17 PM

    What's a dick fold?

  17. Posted by Guest | March 14, 2014 at 2:39 PM

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

  18. Posted by Guest | March 14, 2014 at 2:40 PM

    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.

  19. Posted by Hotspot Shield 3.35 | March 18, 2014 at 3:37 PM

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

  20. Posted by Reed | March 19, 2014 at 11:19 PM

    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.