SEC delaying civil action against Cohen

AP News
Posted: Aug 08, 2013 9:17 PM

WASHINGTON (AP) — The Securities and Exchange Commission is delaying its civil action against billionaire hedge-fund manager Steven A. Cohen while federal prosecutors proceed with their criminal case against his firm, SAC Capital Advisors.

The chief administrative law judge at the SEC, Brenda Murray, had been scheduled to hear the agency's case against Cohen later this month. But she ruled Thursday to grant the Justice Department's request for a delay.

The SEC filed the action July 19 against Cohen, alleging he failed to prevent illegal insider trading by some portfolio managers at the Connecticut-based SAC Capital, one of the biggest U.S. hedge fund companies. Cohen faces possible fines and could be barred from managing investor funds.

Cohen's attorneys have called the allegations "unfounded" and said he did nothing wrong.

The Justice Department later brought a criminal indictment against SAC Capital, calling it a hotbed of insider trading. That action didn't name Cohen as a defendant.

SAC Capital said it "has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously."