Steven Cohen, the billionaire who shut down SAC Capital Advisors last year to settle charges of insider trading against the hedge fund, is banned from managing outside money until 2018, the US Securities and Exchange Commission announced on Friday.
Andrew J. Ceresney, Director of the SEC’s Enforcement Division, said:
Before Cohen can handle outside money again, an independent consultant will ensure there are legally sufficient policies, procedures, and supervision mechanisms in place to detect and deter any insider trading.
The strong combination of a two-year supervisory bar and additional oversight requirements achieves significant and immediate investor protection and deterrence, while ensuring that the activities of his funds are closely monitored going forward.
The SEC has accused Mr Cohen of failing to supervise Michael Steinberg, a former portfolio manager at SAC Capital and another senior employee, Mathew Martoma, who was sentenced to nine years in prison in September on insider trading charges.
Mr Cohen neither admits nor denies the SEC’s finding.
Under the terms of the settlement, Mr Cohen is prohibited from serving in a supervisory role at any broker, dealer, or investment adviser until 2018, must retain an independent consultant and adopt consultant recommendations, and must submit to on-site SEC examinations of his registered or unregistered firms.