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Washington • The Securities and Exchange Commission on Friday filed civil charges against Steven A. Cohen, accusing the billionaire hedge-fund manager of failing to prevent insider trading at the fund he founded.
Cohen founded and runs SAC Capital Advisors. The government has called the SAC Capital Advisors case one of the biggest insider-trading fraud cases in history.
The SEC said Cohen failed to supervise two senior employees of SAC Capital and prevent them from illegal insider trading. As a result of illegal trades by Cohen's hedge funds, the funds reaped profits and avoided losses of more than $275 million, the SEC said.
The SEC is seeking unspecified fines against Cohen. The case will be heard by an administrative law judge at the SEC.
A spokesman for SAC Capital said the allegations have "no merit" and Cohen "will fight this charge vigorously."
"Steve Cohen acted appropriately at all times," spokesman Jonathan Gasthalter said in a statement.