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Wednesday, December 16, 2009

Stevie Cohen's wife accuses him of insider trading


Here's the NYT synopsis:

Ms. Cohen claims her ex-husband hid millions of dollars from her — a common enough complaint as big-money divorces go....To hide his millions, the complaint asserts, Mr. Cohen funneled money to a New York real estate operator who was later convicted on fraud charges and then fled to Costa Rica, where he was eventually tracked down.


Ms. Cohen, however, claims her former husband broke the rules as far back as the 1980s. And she asserts that for two decades he hid millions of dollars from her with the help of Brett K. Lurie, a lawyer for Mr. Cohen who became a partner in real estate deals.


And Ms. Cohen claims that her former husband did not just hide things from her — he also hid them from the authorities..


She claims in her suit that in 1985, while they were married, Mr. Cohen confessed to her that he received inside information on the takeover of RCA by General Electric. When she asked him if trading on such information would be illegal, Mr. Cohen said that that he knew that the source was a former classmate of his from Wharton. But he obtained the information from a mutual friend, so he was not involved in insider trading.

And here's the lawsuit:

Lawsuit by Steven A. Cohen's Ex-Wife                                                                                                                                                       

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