But the man behind the firm that bares his initials – Steven A Cohen – is alive, free, and phenomenally wealthy with a $9.4 billion net worth. A fortune Cohen amassed via SAC Capital and its criminal practices.
As a guilty verdict on two counts of securities fraud and one count of conspiracy was read in the courtroom in Lower Manhattan, Mr. Martoma’s wife, Rosemary, a pediatrician, cried, while he sat stone-faced…
For Mr. Cohen, meanwhile, it is business as usual, albeit on a somewhat reduced scale. He is moving ahead with plans to convert his 22-year-old firm into a family office that will manage no outside money, just his $9 billion in personal wealth. The firm will still employ more than 800 people and maintain offices in several cities.
The government has forced SAC Capital to shut down, but $9 billion is some nice seed money for Cohen’s new venture.
The Martoma case is likely the last criminal prosecution related to SAC. Cohen still faces a civil charge from the SEC for failure to properly supervise his criminal traders which if nothing else proves the government has a sense of humor. It was common knowledge on Wall Street that Cohen and company gained from inside information; it’s unlikely Cohen was unaware of his traders activities, especially given the incredible benefits he gained from them.
[T]here are no pending criminal cases against any former or current SAC employees. (The firm agreed in November to plead guilty to insider trading violations and pay a $1.2 billion penalty.) And prosecutors are not close to bringing any charges against Mr. Cohen, according to a person briefed on the investigation, who spoke anonymously because he was not authorized to speak publicly about it.
Free and clear. Crime pays, with interest.