SAS Capital founder accused of insider trading by ex-wife

18 December 2009

Steven A Cohen, the founder of SAS Capital, has been accused of insider training during the 1980s in a lawsuit filed by his ex-wife.

The hedge fund manager’s former partner Patricia Cohen has accused him of making millions of dollars by using insider information in a number of deals between 1978 and 1992.

Her complaint alleges that Mr Cohen took advantage of insider information during the acquisition of RCA by General Electric Co in 1985.

She also claimed that her ex used secret bank accounts to hide money, which she was entitled to as part of their divorce settlement.

“Although she did not have a college degree and had no training in finance or law, Ms. Cohen questioned defendant Cohen about the legality of trading inside information,” the suit states.

Jonathan Gasthalter, a spokesman for Mr Cohen, contested the lawsuit.

“These are ludicrous allegations made by a former spouse that are entirely without merit. It is disgraceful that a member of the bar would assist her in what can only be considered a transparent attempt to extort money,” he explained.

The pair married in 1979 and subsequently divorced in 1988.

By Jim Ottewill

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