The SEC is resuming its case against S.A.C. Capital Advisors founder Steven Cohen for allegedly improper supervision of two fund managers accused of insider trading, said documents filed Monday.
Securities and Exchange Commission enforcement officials filed a corrective order to resume the case first filed in July 2013, alleging that Mr. Cohen “failed reasonably to supervise two senior employees,” Mathew Martoma and Michael Steinberg. Both fund managers were convicted in U.S. District Court in New York of insider trading, but in October the criminal charges against Mr. Steinberg were dismissed following an appeals court decision overturning the lower court.
The SEC’s latest complaint said the enforcement division “still intends to offer evidence” related to Mr. Cohen’s supervision of Mr. Steinberg, “to prove respondent’s liability for failing to supervise Martoma.” In his response, Mr. Cohen reserved the right to limit or exclude evidence not directly related to his supervision of Mr. Martoma.
The hearing is scheduled to begin April 11, 2016, in New York. Witness lists and initial witness reports are due Feb. 15.
Chief Administrative Law Judge Brenda Murray said in an order following the pre-hearing conference that the SEC “shall use its best efforts to produce all non-privileged documents” for Mr. Cohen by Jan. 29.
E-mails to Mr. Cohen’s attorneys, David Boies and Michael Gottlieb at Boies Schiller & Flexner, were not returned at press time, and S.A.C. spokesman Jonathan Gasthalter declined to comment.
