Steven Cohen's long personal immunity to accusations of insider trading that have circled his hedge fund and former employees has come to an end.
The Securities and Exchange Commission announced Friday that Cohen would have to answer to civil claims that he failed to "reasonably supervise" two senior people at SAC Capital who have been accused of engaging in criminal insider trading. Cohen's case is not criminal, however, and the SEC doesn't accuse him of engaging in insider trading.
Instead Cohen will be accused in an administrative hearing of failing to supervise the wrongdoers. Penalties, if any, would be determined through the administrative hearing. The SEC said they could include fines and a bar from the securities industry, which could mean the end for SAC Capital. Alternatively, Cohen could be forced to close his fund to outside investors. He and fellow SAC employees have about $9 billion in the fund.