Insider trading case target a major campaign donor
I have a problem with calling Steven A. Cohen a “donor”. A “donor” usually picks a side and give a decent amount of support.
What Steven A. Cohen has done isn’t donating, it’s buying off. When you are splashing money around to all parties and all kinds of Senators, most who don’t even serve the state you live in, you aren’t donating to them, you are giving them hush-money.
Steven A. Cohen, the multi-billionaire hedge fund owner implicated in an insider-trading scandal, is a major political donor who has contributed heavily to big players in both parties.
Cohen and his wife Alexandra have donated more than $450,000 to the campaign committees and leadership PACs of Senate Majority Leader Harry Reid (D-Nev.), Senate Minority Leader Mitch McConnell (R-Ky.), House Majority Leader Eric Cantor (R-Va.) and other key lawmakers during the last several election cycles, Federal Election Commission records show.
Cohen also gave $1 million to the Republican Governors Association during the 2009-10 election cycle, according to a Jan. 2011 report from the Center for Public Integrity, a watchdog group.
Cohen is the founder of SAC Capital Advisors and has been estimated by Forbes to be worth as much as $8 billion.
Cohen was implicated in a $276 million insider-trading case brought by the the Securities and Exchange Commission on Tuesday.
In its criminal complaint, the SEC alleged that Mathew Martoma, a former trader with CR Intrinsic Investors — an SAC Capital Advisors affiliate — obtained inside information in 2008 about the progress of clinical trials for an Alzheimer’s drug being developed by two companies.
According to the SEC’s complaint, Martoma “illegally obtained confidential details about the clinical trial from Dr. Sidney Gilman, who served as chairman of the safety monitoring committee overseeing the trial.”
“This massive repositioning allowed CR Intrinsic and the affiliated advisory firm to reap approximately $82 million in profits and $194 million in avoided losses for a total of more than $276 million in illicit gains,” the SEC alleged.
Read more: http://www.politico.com/news/stories/1112/84109.html#ixzz2CntW9FGz