The U.S. Securities and Exchange Commission announced on Friday that it's brought an administrative proceeding against hedge fund mogul Steven Cohen, whose firm SAC Capital Advisors has long been mired in an insider trading scandal.
In a 17-page filing, the SEC accused Cohen of failing to reasonably supervise two of his senior employees, Mathew Martoma and Michael Steinberg, who allegedly traded stocks based on insider information. If the SEC prevails in the administrative proceeding, Cohen could face financial penalties and be banned from overseeing investments.
