{"id":5966,"date":"2016-04-21T00:00:00","date_gmt":"2016-04-21T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2016\/04\/sen_elizabeth_warren_calls_out"},"modified":"2022-06-16T11:16:21","modified_gmt":"2022-06-16T16:16:21","slug":"sen-elizabeth-warren-calls-out","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sen-elizabeth-warren-calls-out\/","title":{"rendered":"Sen. Elizabeth Warren Calls Out the SEC for Not Stopping Hedge Fund Billionaire Steven Cohen From Starting New Hedge Fund"},"content":{"rendered":"<p>U.S. Senator Elizabeth Warren chastised the Securities and Exchange Commission for not barring billionaire Steven Cohen from starting a new hedge fund just months after the regulator scolded him for not properly overseeing an ex-employee convicted of <a href=\"https:\/\/www.securities-fraud-attorneys.com\">securities fraud<\/a>.<\/p>\n<p>In 2013, Cohen\u2019s SAC Capital consented to pay $1.8 million and pleaded guilty to fraud charges accusing the hedge fund of allowing insider trading to take place. It wasn\u2019t until January of this year, however, that the SEC told Cohen that he was barred from managing the money of other people until 2018. Now, however, he is already involved in efforts to start Stamford Harbor Capital, a new hedge fund, of which he owns 25%.<\/p>\n<p>Criticizing the SEC in a letter to its chairperson, Mary Jo White, Senator Warren said that Cohen\u2019s application to start the new hedge fund, which the Commission approved, is just another example of the regulator\u2019s enforcement actions failing to properly punish parties that are guilty, not protecting investors, and failing to impede future wrongdoing. It was just this January that Warren said that she believed that U.S. companies manage to commit crimes in part because of poor enforcement. She pointed to the SEC as an agency that often does not succeed in using the full scope of its enforcement powers.<\/p>\n<p>In its case against Cohen, the SEC accused him of not properly supervising Mathew Martoma, who was convicted in of insider trading that allowed SAC to make gains and avoid losses of $276M. (Martoma is appealing his conviction.) While Cohen did not admit to wrongdoing when settling the SEC case, he did retain an independent consultant to ensure legal compliance.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/sen-elizabeth-warren-calls-out\/#more-5966\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Senator Elizabeth Warren chastised the Securities and Exchange Commission for not barring billionaire Steven Cohen from starting a new hedge fund just months after the regulator scolded him for not properly overseeing an ex-employee convicted of securities fraud. In 2013, Cohen\u2019s SAC Capital consented to pay $1.8 million and pleaded guilty to fraud charges [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3748],"tags":[2652,3618],"class_list":["post-5966","post","type-post","status-publish","format-standard","hentry","category-hedge-funds","tag-sac-capital","tag-steven-cohen"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sen. Elizabeth Warren Calls Out the SEC for Not Stopping Hedge Fund Billionaire Steven Cohen From Starting New Hedge Fund &#8212; Investor Lawyers Blog &#8212; April 21, 2016<\/title>\n<meta name=\"description\" content=\"U.S. Senator Elizabeth Warren chastised the Securities and Exchange Commission for not barring billionaire Steven Cohen from starting a new hedge fund &#8212; April 21, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sen-elizabeth-warren-calls-out\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Sen. 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Elizabeth Warren Calls Out the SEC for Not Stopping Hedge Fund Billionaire Steven Cohen From Starting New Hedge Fund &#8212; Investor Lawyers Blog &#8212; April 21, 2016","twitter_description":"U.S. Senator Elizabeth Warren chastised the Securities and Exchange Commission for not barring billionaire Steven Cohen from starting a new hedge fund &#8212; April 21, 2016","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/sen-elizabeth-warren-calls-out\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/sen-elizabeth-warren-calls-out\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Sen. 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