EFTA00637560.pdf

From: Richard Kahn • To: "Jeffrey E." <jeevacation@gmail.com> Subject: Fwd: Alert - Steven Cohen SEC Settlement Date: Fri, 08 Jan 2016 20:38:39 +0000 Richard Kahn HBRK Associates Inc. 575 Lexington Avenue 4th Floor New York, NY 10022 tel fax cel Forwarded message From: Securities Litigation Group Date: Fri, Jan 8, 2016 at 3:33 PM Sub'ect: Alert - Steven Cohen SEC Settlement To: EFTA00637560 SECURITIES LITIGATION ALERT JANUARY 8, 2016 Steven A. Cohen SEC Settlement Opens Door for Him to Manage Outside Money in Two Years Steven A. Cohen today reached a settlement with the SEC that may result in him managing outside money in less than two years. The settlement imposes a bar on him associating with an investment adviser or broker dealer in a supervisory capacity until December 31, 2017. Until that time, Cohen will continue to be able to run his large Family Office, Point 72 Asset Management. Notably, this is a "neither admit nor deny" settlement, which means Mr. Cohen did not have to admit to any of the SEC's substantive allegations to end the case. The SEC's settlement order alleges that Cohen failed to reasonably supervise Matthew Martoma, which resulted in Mr. Cohen's firm engaging in insider trading. Further, it alleges that Cohen ignored several red flags that Martoma had access to inside information. EFTA00637561 Finally, the Order imposes some additional requirements on Mr. Cohen, including requiring his family office to retain an independent consultant to monitor insider trading issues. The Order also permits the SEC to conduct examinations of Point 72 Asset Management for any reason. Ordinarily, the SEC is not permitted to conduct examinations of Family Offices, which are not registered with the SEC. At the end of the day, however, this settlement appears to be a small price to pay to make the government walk away from the largest insider trading investigation in history. Given the government's major attempt to put Cohen behind bars, this settlement gives Cohen a major victory by opening the door to his return to the hedge fund business. If you have questions about this Alert, please contact Sam Lieberman at or Sadis & Goldberg LLP Please feel free to discuss any aspect of this Alert with your regular Sadis & Goldberg contact or with any of the partners, whose names and contact information are provided below. Alex Gelinas, Daniel G. Viola, Danielle Epstei Douglas Hirsch Erika Winkler, Jamie Kim, Jeffrey Goldberg Jennifer Ross John Araneo, Lance Friedler, Mitchell Taras, Paul Fasciano, Ron S. Geffner, Sam Lieberman, Steven Etkind, Steven Huttler, Yehuda Braunstein, Yelena Maltser, If you would like copies of our other Alerts, please visit our website at and choose "Library." The infomtation contained herein was prepared by Sadis & Goldberg LLP for general informational purposes for clients and friends of Sadis & Goldberg LLP. Its contents should not be construed as legal advice. and readers should not act upon the infommtion in this Alert without consulting counsel. This information is presented without any representation or warranty as to its accuracy, completeness or timeliness. Transmission or receipt of this information does not create an attorney-client relationship with Sadis & Goldberg LLP. Electronic mail or other communications with Sadis & Goldberg LLP cannot be guaranteed to be confidential and will not create an attorney-client relationship with Sadis & Goldberg LLP. EFTA00637562 Sadis & Goldberg LLP 1551 Fifth Avenue, arst Floor I New York, NY 10176 I Copyright © 2016 Sadis & Goldberg LLP Forward this email Ilil This email was sent to by Update Profile/Email Address Rapid removal with Safelinsubscribe"^ About our service provider. Sadis & Goldberg LLP 551 Fifth Avenue, 21st Floor New York NY 10176 EFTA00637563