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All right we're back here and SEC capitalist says the hedge fund and its founder Steve Cohen of acted properly and are cooperating with the government in this 276.
-- dollar insider trading case has been getting a lot of attention here.
Last couple days of largest ever taken on after all by the Securities and Exchange Commission so Fox Business -- senior correspondent -- desperate as the all -- -- here now what we.
But it's getting a lot of attention is right calling.
And we should point out that Steve Cohen has not been chart right.
The guy that was charged yesterday was one of his portfolio managers a former portfolio manager left the company in 2010 his name is Michael -- more Toma -- and this pronounce his name all the time.
But here's the rub more Toma made about 25217.
Million dollars in illegal.
In in money -- the legally to insider tips that's probably the largest amount of money ever I've seen in -- like this.
He shared those tips but guess who.
Steve Cohen there you -- thoughts that's where the investigation it's really to see and that's where wanna bring in my guest Elizabeth know we keep former SEC enforcement attorney.
And just ask -- I don't think Elizabeth that there's enough here.
That that there is that this charge of this stuff -- Steve Cohen in this lawsuit just because someone tells me something any got that that information illegally to an insider tip in this case.
It was a doctor right that do something about a alzheimer's drug.
Inside information he traded on it he shared that with.
Which Steve Cohen there's nothing in this -- these charging documents that said Steve Cohen knew it was illegal information.
What say you.
I think I disagree with the way that you're reading the indictment.
Against mark -- -- getting -- I don't know pages.
They might well have.
In the indictment for Martel month.
It's made clear by the FBI investigator that.
In order to make the 276.
Million dollars in trades.
It was Steve -- who had to pull the trigger so -- home mom who received the material nonpublic information.
Had to convince -- to pull the trigger cell huge amount of stock and then by shorts right I have these -- -- did it.
I imagine by telling Steve Cohen.
This is good information.
I got it from a doctor involved in the trial.
Public we don't know that immediately -- -- think he is one thing -- we should to a point about how SEC capital works -- -- -- How much trying to be that's a defense attorney here for Steve -- -- -- merely trying to play devil's advocate with you.
Bottom line is there's Steve -- runs his -- amount of money and these other portfolio managers run money is well.
They eat in running their money you know -- -- this -- more -- they go out they make bets and they share their best bets with Steve Connolly.
Now just because he's he'd obtained that that information illegally.
And in supposing doesn't tells Steve Cohen that he obtained illegally is -- -- very possible.
No according to the indictment there was a twenty minute phone call between -- -- And Steve Cohen after the tipping right doctor gave -- -- nonpublic information what are they discussing for twenty full minutes.
Much -- since who has been a much savings and I'm not I'm not saying that that he's innocent and we you know he says he's innocent we've we've reached out to me says he's done nothing wrong he's gonna be exonerated when this is all.
Over more -- says that as well.
I'm just saying to you.
Listen it's a little fishy when the government charges this this guy obviously big trade.
Right but doesn't charge Steve -- -- must not have the case.
I don't think so I read it differently -- recharging it that the government.
They there's still -- to charge him.
But my guess is -- government put out.
I think the government put out this.
Compelling indictment right right fabulous read.
In order to its I think shakes insensitive Cohen make -- nervous right.
They can get on its problems are ready they're it was a Cohen is already there as they've been investigating this guy.
You know since before you're not report no not -- -- they would have been investigating this guy since.
In my estimation since I was working at the Wall Street Journal something like 2000 OK so for the last twelve years Steve Cohen has been under investigation okay what more nervous.
Are there are they gonna be my guess is they don't have the case the guy -- tried to make nervous is more Toma.
Who's facing twentieth is behind jail if he doesn't give up somewhat higher which is who's Steve -- but I'll tell -- -- the way I know SEC capital.
You know it's one of those that did one of those places the way that -- -- is Steve Cohen doesn't want to know necessarily -- -- getting information he just want to know you know is this a good trade.
And I'll tell you if he stopped short.
Beat defense attorney here -- or be a prosecutor if he stopped short.
Giving telling him this was inside information if he told them that was great stuff.
I got a great source if -- -- short about telling him exactly how we got it can you make a case against Steve Collins.
Absolutely absolutely he knew or should have known.
You're not gonna sell 207 -- actually he sold close to 800 million dollars out to be worth of stock.
Based on any any in any and then Steve Cohen pulled the trigger on buying sure positions -- easy I don't.
You will limit how you still have a friend that I'm sorry you still in my view is -- I love it you still haven't already that -- we don't have the smoking gun that Steve Cohen knew was inside information and until you got that.
There is no case here in time you say I love ya know moving.
Thank you Elizabeth to conceptualize will be obviously -- -- -- I have a number of times throughout the next story enters its end like I said you need to find that smoking gun in deputy -- -- don't have it yet but it's all safe and not a threat to Nicole.