Bloomberg reports that Steven A. Cohen, a billionaire hedge fund manager, has been accused by the Securities and Exchange Commission (SEC) of failing to supervise two of his employees who were engaged in an insider trading scheme. Cohen is the hedge fund manager and founder of SAC Capital Advisors. The SEC claims that there were obvious signs Cohen's employees were involved in an insider trading scheme and that he should have been well aware of the situation. According to the SEC, Cohen ignored obvious signs of the insider trading scheme which allowed his firm to avoid hundreds of millions of dollars in losses. The two SAC employees accused of insider trading are facing criminal charges and the trial is expected to take place later this year.
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To read more about this, please visit: http://www.bloomberg.com/news/print/2013-07-21/sec-tries-al-capone-tactic-to-put-sac-s-cohen-out-of-business.html