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FBN’s Charlie Gasparino on the Department of Justice’s insider-trading investigation of SAC Capital Partners founder Steve Cohen.
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There is a major obstacle in the Justice Department's insider trading investigation.
Gasparino spoke about talk about breathless and for those.
We're excited here we start bashing each other and that -- -- -- in the building started with gluten and I don't moves up went -- You know puts it.
They've been looking at Steve Cohen since 2007 we should point out that it's when -- kind of first got on the FBI's radar screen regarding BJ carrying the FBI agent.
-- helped to try to develop against case against him he's the he's actually the FBI agent.
Who got this of the the sort of court order to have to sort of the quarter on quarter to love -- Steve Cohen's home which we were first reported at a fox is that we're adding that 2008.
Was got -- that you see now is that they've narrowed the cases it has been many.
Lots and lots of insinuation and -- fishy trades that look like possible inside information trading before material events.
-- now get down to obviously this one case involves Matthew -- Toma.
Dealing with here -- former trader deal and it basically telling Steve Cohen.
Something -- had a -- about.
That about why he was buying and selling the shares of Eli and -- if those two drug company stocks.
He's been indicted because -- got to send information from a doctor right now the question is will -- -- be indicted these that phone call here's what I know.
If more -- doesn't flip federal prosecutors believe we are getting some sources close to him in investigation.
They believe they do not do not to do not have a case against -- will you flip he's facing 22 years but we should point out.
He hasn't yet and they -- they do have a joint defense agreement SEC and -- told.
And I will say this is a moral thing in in -- favour.
And I don't know the exact date but from what I understand the statue of limitations on this case it's gonna run out in the summer.
And so if they don't get more -- -- stick by this summer crowded out Steve Cohen is likely not to get indicted in this case I will say this.
Is what I'm hearing from people close to the prosecution.
If they don't get -- on this the other cases aren't that good the other potential witnesses.
Aren't that good -- people talk about this Michael Steinberg he's an unindicted co conspirator he's one of the top guys at SEC maybe he'll flip.
I from what I understand they don't think.
Do you think that there is good is marked only they don't have it mean this is a kind of an interest in case remember portola buying and selling -- and wife.
He's noted mr.
online whatever it is the -- and Wyeth.
These -- selling that he's buying and selling that wind.
You know right right during -- before material events and getting some inside information from the stock that was involved.
In something drug company trials of it affected the stock he has a fairly long I think it's a twenty minute phone call with they know these spoke with Cohen at some point.
What he said they don't know.
That's would they they're trying to get -- the Chinese say.
Say that maybe you know more total if you don't you don't flip you don't just sort of you do what we -- know exactly what you told Internet twenty minute phone call.
And if they don't get them.
I'm telling me that they don't think they got the case right now not to get into the whole whether you really believe in insider trading at a crime the point out about this -- average viewer we know you don't but the point about the average viewer is that.
If he had this inside information makes this victory analysts money that the land the landscape is uneven and unfair that some -- that's that I mean that after Steve -- that's that is kind of European -- their opinion I don't I think there are -- that's not my theaters might you might -- -- insider -- -- aside from this case I thought they would the cases.
You know he may go to jail he may not Irish on the not gonna get -- on this I also have a feeling that when -- who spoke to mean it's eight -- Steve.
Got some inside information on this -- It means they don't smarter than we talk in a code yet having young prosecutor thinks it's -- would.
At its SEC capital they ask you -- conviction level.
A very high numbers and number -- a number ten.
It's pure next time -- well -- themselves -- to start this while they while they're going after this.
There are rip -- going off that real reports -- search ratings not ripple.
Charlie thank you very much Charlie Gasparino closing bell ringing in.
