Billionaire Steven Cohen’s Insider Trading Settlement Is Victory For Him


Steven A. Cohen, a hedge fund billionaire, has entered into a settlement with the U.S. Securities and Exchange Commission in an insider trading case.

Mr. Cohen was accused of failing to properly oversee Mathew Martoma, an employee of Mr. Cohen’s former firm SAC Capital Advisors. Martoma was convicted of insider trading.

Under the terms of settlement, Mr. Cohen will not be able to manage money for outside investors for the next two years. Nevertheless, this settlement looks a victory for Mr. Cohen, who could have faced a lifetime ban for managing outside money.

In 2013, SAC Capital Advisors pleaded guilty to securities fraud charges. The firm paid $1.8 billion in fines to prosecutors and securities regulators in the United States.

Mr. Cohen, however, did not get any charges. He was not criminally charged.

Mr. Cohen’s new family office Point72 Asset Management manages about $11 billion of his personal fortune. The firm was rebranded by Mr. Cohen after the plea.

Mr. Cohen is required to get an independent consultant through the end of 2019 if he wants to manage money for outside investors in 2018, according to the settlement.

Washington Post, New York Times, Reuters contributed to this report.