This transcript is automatically generated
Federal prosecutors want former SAC hedge fund trader Matthew -- not to cooperate they desperately want him to case basically.
In an effort to build a case against his old boss Steve Cohen instead.
Is cooperating with Colin Charlie Gasparino has all the teaches -- a full cooperation remember we reported yesterday.
That SEC capital is paying for -- -- was attorney.
We don't know the reasons for that other vendors -- possibly an employment agreement that covers even fired attorney basically she was fired two years ago for poor performance.
And if you charged with something while on the job -- Matthew -- -- -- is charged with insider trading.
Face twenty years in jail as he was -- -- for actions he -- while he was that SEC capital.
But this is a new once that's actually more than once it's an important story because here's what's going on in addition to paying for that attorney.
There is -- cooperation agreement sources -- the Fox Business Network between SEC capital.
And -- home was attorney Charles -- -- what does this mean.
This this is variation because what it does it means that.
Any time there is it of document requests from the Fed's.
Well guess what -- knows about it.
You know -- the Fed's bringing -- me wanna talk to me again.
Cohen knows about it he also knows or isn't attorneys -- that if their -- which more -- does indeed flip.
He's got the playbook of the government against him.
This is a -- very tune in in defending himself against what would is obviously the Fed's attempt to indict.
The big -- the biggest hedge fund managers may be the biggest hedge fund matter one of the greatest known as the greatest investors of Lisa you know in in recent history.
Steve -- is a massive record that.
Far surpasses -- Buffett if you look at the last fifteen years returns stars we since 1996 will say.
Steve Cohen has returned 25 point 5%.
Warren Buffett has returned eight point 610 so he's the way up and he SEC -- -- -- the the S&P has returned five.
Point 5% to like 5%.
He beats the market now I wish I we'll tell -- -- defense they say there's no way you can beat the market and he beats and every year one down year 2008 which.
That's not because of investing -- because of the financial crisis right.
And when totally -- actually sold out his positions.
The -- -- he beats the market because he plays dirty.
We should point out Steve Cohen does not say -- they've gone says you know and -- research either great -- you know.
Take I mean yeah it's impossible to have that type of return -- -- what -- -- and part time has the Fed's breathing down his neck and saying twenty years Matthew twenty years.
Yeah that whole lot paying for your legal fees becomes active -- remember what I said if this is where's this is where Steve Cohen and his attorneys are Smart.
If that becomes the case.
They have the playbook because there's a cooperation agreement they know exactly what he's -- cooperate on.
You know had to defend themselves they have an insight into the case this is a key move it's very big here.
If you Steve Cohen -- know what the playbook is because.
Is likely to be a playbook -- I.
If this guy goes to trial -- Toma.
He is good it usually these guys it was a they have -- the conviction rate of like our -- like 95%.
This guy -- based on jurors in the way they act.
He's gonna go to jail for at least ten years he's gonna go at least as long as -- because -- Roger -- drug -- and -- group found there.
I think when -- told -- in terms of the case that they brought when they totaled up the illegal trades and how much you save them and made.
You know saved from losses are -- from gains.
It it was less than a hundred million I know that I have might have been significant investment minutes of like eighty.
-- -- -- -- Either -- or prevented losses through his illegal trades of in the -- -- why it's stock by.
Having inside information provided to and from a from a from a doctor -- -- about the drug trials -- long have you -- have a lot you know and.
You land -- -- think he saved or made it.
Million so if -- Scott what he got a -- for ten years.
Unless she cooperates and never forget it operates -- -- these five years free Terry okay about a -- but why why create that if he tells Steve Cohen didn't do this whole global force Steve Cohen buys the stock.
What was said during that phone call that Steve Cohen -- was insider trading when he bought the stock.
We're should've -- Charlie Gasparino.
You know I like -- -- -- TI suggests I don't think you should I I don't I think you know might might my opinion is.
They should put anybody -- for this insider trading stuff this is nonsense I don't know I it's it's a civil crime it's -- this is not.
And until Charlie desperate people -- from robbery need to put commentary and I'll I.