The US Commodity Futures Trading Commission (CFTC) has filed a notice of intent to revoke, suspend, or place restrictions on the registration of Steven A Cohen of Greenwich, Connecticut.
The CFTC simultaneously issued an opinion and order accepting Cohen’s offer of settlement and settling the action.
The CFTC order immediately restricted Cohen’s registration as an associated person (AP) of SAC Capital Advisors. Additionally, pursuant to the order, Cohen agreed not to engage in any activity requiring registration with the CFTC or to act as an officer or employee of any person registered or required to be registered with the CFTC until at least 31 December 2017, contemporaneous with the restriction end date set forth in a Securities and Exchange Commission (SEC) order of 8 January 2016.
The CFTC order finds that on 8 January 2016, the SEC entered an order making findings and imposing remedial sanctions pursuant to Section 203(f) of the Investment Advisors Act of 1940, in which the SEC found that Cohen had “failed reasonably to supervise [an employee] with a view to preventing [that employee’s] violation of Section 10(b) of the [Securities] Exchange Act [of 1934] and Rule 10b-5 thereunder.”
Cohen consented to the SEC order, without admitting or denying the findings therein. The SEC order included a finding that Cohen ignored red flags, failed to take prompt action to determine whether Matthew Martoma, a portfolio manager who reported to Cohen, was engaged in unlawful insider trading conduct, and failed to take reasonable steps to prevent violations of the federal securities laws.
The CFTC’s order finds that Cohen is subject to statutory disqualification from registration with the CFTC pursuant to Sections 8a(3)(C) and 8a(4) of the Commodity Exchange Act and restricts Cohen’s registration under the terms set forth in the order.
CFTC division of enforcement staff members responsible for this matter include Michael P Geiser, K Brent Tomer, Lenel Hickson, and Manal M Sultan.
