General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsAnd yet once again the little fish will get eaten
and the big fish will swim away with the worm.
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SEC Tries Last Ditch Move to Put SACs Cohen Out of Work
Jul 22, 2013 12:22 PM CT
In an administrative action that constitutes its first formal salvo against Cohen, the U.S. Securities and Exchange Commission alleged he failed to supervise two wayward portfolio managers and ignored red flags. The agency stops short of accusing the owner of SAC Capital Advisors LP of insider trading. While the proceeding may result in his being barred from managing other peoples money, it wont carry the potential penalties available if the SEC had sued him. It also pales in comparison to a grand jury indictment for securities fraud, and the 20 year prison term a conviction could bring.
Instead, the SEC claim that Cohen should have known two of his subordinates were using material, non-public information to rack up hundreds of millions of dollars in trading profits will be easier to prove. The regulator will have a lesser burden of proof and wont have to deal with all of the protections afforded a defendant in a lawsuit, let alone a prosecution.
They are using an Al Capone-style tactic, said John Coffee of Columbia Law School, referring to the prosecution of the Chicago gangster in 1931 on charges of tax evasion. The SEC is aiming at his kneecaps, not his jugular, he said. This is a little like catching John Dillinger entering a bank with a submachine gun and charging him with double parking.
http://www.bloomberg.com/news/2013-07-21/sec-tries-al-capone-tactic-to-put-sac-s-cohen-out-of-business.html?alcmpid=markets
Kolesar
(31,182 posts)matthews
(497 posts)And no, this is the standard SOP for this administration. Not to even try.
Who was it that gave us 'too big to fail'?