How an SEC Hearing Might Help Steve Cohen

Lawyers say an appearance before the Securities and Exchange Commission could be a rehearsal for a bigger case against SAC Capital Advisors.

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It has been fodder for cocktail party conversation for almost five years: if SAC Capital Advisors founder and CEO Steven Cohen didn’t know that he had portfolio managers engaging in trades that could look suspicious, was he doing his job?

That, of course, is the basis for the Securities and Exchange Commission’s civil charges, announced last week, that Cohen ignored red flags and failed to reasonably supervise his staff.

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