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FBN’s Charlie Gasparino on the FBI’s investigation into SAC Capital Partners founder Steven Cohen.
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How interested are the feds -- bringing charges against SEC capital chief Steve Cohen so bad.
It appears that even though he hasn't been convicted or much less charged with insider trading anything -- investigators are.
Likening him to a ahead of an organized crime family now Fox Business you know.
Plus -- every night.
I was -- like games that we should point I I as I've said I think insider trading is a victimless crime.
Although you do go to jail for a long time if you if you trade on material with -- material non public information.
A clearly the feds believe that there's a lot of that stuff going down at at Edison capital we do know Fox Business has learned that.
They are investigating Steve -- they had been for for many years now me.
First report that around 2007 they'd -- tapped the from the got a court ordered to tap the phone in his home.
We conduct some of his business clearly lots of interest didn't.
And it's the interest is so high and they really do believe that this is a prop problematic fuhrman's.
Sources close to the government investigators at the FBI for example has an organizational chart of steam of of SEC capital to fund that he runs.
That looks just like one of those mob charts -- we know -- we're getting this from senior people.
Close to the investigation including some of the witnesses that they're trying to coax into -- -- to be it cooperating.
Sometimes in doing this what they do is a -- -- listen share.
This is where you sit in the in the in the organizational structure.
Here's the -- the top and pull out of big chart.
We're Steve Collins -- at the top would all these lines coming out so clearly they if they have their eyes.
On Steve Holland they wanna they won't they they want to charge him with something we're talking about.
This is the FBI so this is these are potentially criminal charges -- the SEC's look at our as well around -- Idaho I'm sorry I mean and clear and clearly they think he's he's -- but involved he runs a company -- that.
Floats -- law like an organized crime family.
We should put -- and kill people at a -- capital they just if if they do anything wrong and today if now the -- -- -- I trading again I think a victimless crime but again you deal for ten years and more for doing it.
Mr.
we're tore torme Matthew -- -- is the latest SEC capital sort of associate.
To -- and in this insider trading -- -- As we know he traded -- that drug drug making stock he shared some of his -- east tips or is is knowledge.
With Steve -- we know that from the complaint is that the gentleman described as the fund owner or the portfolio manager eighty.
Is we -- with Steve -- But it's a long road from sharing those tips to that is to -- calling improving that he knew those tips were insider trading and here's one of the problems with this case.
And I'll say this is why I think -- some more -- What you think of what homes and flip or whatever he's got he's got evidence against the company -- a flip yet and you know they tried.
Right you get charged generally when you when the and you ignored the the the sort of the benefits companies that we want to -- -- -- that's when you get charged.
Here's the problem.
These activities occurred in 2008.
I can tell you for fact that Steve Cohen -- in 2008 that the feds -- watching his every move.
-- I don't know if he knew he was phone was tapped back then he probably found that when we first reported last February.
But he knew that they were tracking his every move so he was engaging if he'd like if if he was telling more totally annual year insider trading tips I would be very surprised at that point that's when he's.
His compliant systems were ramp up dramatically.
I really doubt.
That this case is gonna lead to too.
A direct charge -- Steve -- now.
It could be that the feds go for something else and they go for something where they say we don't like the -- manager.
You're your company it's it's you -- to steal properly supervise your personnel -- engage -- all this activity.
And they means that as a charge possibly to shut him down I could see that -- this is down.
Based on that.
That is generally not a criminal charge that would be the SEC get above the securities exchange commission as -- probably.
So district who's leading the probe on the criminal side but that's why I've done it before being convict this -- or much -- charge of particularly on this case remember.
The actions here went down in 2008.
Steve Cohen knew his every move was being watched by the Fed to 2008 he -- he had long before that ramp up this compliance systems for him to.
Knowingly.
Use the insider information knowing it's it's a -- or you know engage in sort of a dialogue where he would know.
Who is who blow me away he's not a stupid.
Man -- up Charlie Gasparino appreciate it very much great sort of fall in the eastern market's closing at thirty is that the public life.
To some social some -- -- I do I drink every night.
-- they're part except I think that -- it figure it.
