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For major investors are keeping close final legal developments surrounding Steve Cohen an SEC capitalize the next redemption date nears.
Charlie Gasparino happy exclusive new details -- in particular Blackstone Group which has from -- -- instead -- 550 million dollars at at -- -- -- -- -- sources that don't.
The -- is network is that no decision has been made yet by Blackstone they are looking at this.
As sort of a day to day decision as you as we ramp up to the debate I believe it's -- -- fifteen to redemption -- so they have no decision.
Decision yet but what's kind of interest in here.
Is that they are closely from what I understand people at the big private equity firm run by Steve Schwartzman they are closely monitoring the legal the legal.
Issues surrounding Steve Cohen and SEC capital essentially.
Will the firm -- charge will miss the column -- charge will any of these potential.
People that they brought in Michael Steinberg former SEC of fund manager Matthew Moore told without current.
Is on leave from confront.
From as they see Matthew Mark toll is a former SEC.
A fund manager both of them arrested for alleged insider trading violations.
Will they in turn somehow flip.
Cooperate with the government to make a case against Steve -- and that's one of the big things that they're weighing right now I can't tell you what an example -- not.
I do know that they're kind of on the fence right now they you know -- -- and be one of the reasons Blackstone is on the fence is because the entire legal community is on the fence.
Whether there's actually going to be charges here against -- CC against mystical we should point out.
-- says he's done nothing wrong.
And there are hurdles to this to the legal case against SEC seeing -- we should point out.
That most of the trades in the here's the key thing most of the trades that are under the suspicion from what I understand.
Date back to 2008.
Is a five year statute of limitations.
If there's a there's a theory out there and I think it's more than -- because Israel.
And I know the US attorney's office is worried about this if you get past its July August of this year.
That expects the statute of limitations.
And you can't bring cases and most of the stuff from what they've what they've looked at what they think is problematic.
I'm not -- it is insider trading but what they think there's a lot of fire around particularly the more -- case where those trades of -- And -- -- before a fairly big market moving event where mister Moore Toma had it and we know we had a conversation.
With Steve Cohen right before they hit the button sold all the stock in the new and and and it -- when he's indicted because.
They have a guy named Sid Gillman a former researcher for for for -- line.
-- he told them.
We're gonna get a bad review come from from clinical trial so.
If -- if if he gets past the summer.
Chances are zero chart what is.
Sorry I know guys within got a split but if you lose Carla that's devoted huge flats are content charges Blackstone start Blackstone and it's a huge lack of confidence that charges in a charge and that's right.
It's a huge thing and it and they are on the fence right now from what what I'm told that this is they're they're monitoring this day by day.
And it's and it's -- it's a scary situation right now I mean what if you're if you're SEC you can lose.
A potential marquee customer and huge -- -- much is gonna happen.
I will say this if you -- You know the one of the problems is like a game of chicken right a suppose you keep your money -- there have been you have to wait a long time to get it out -- -- Steve Colin.
Is in fact one of these guys do flip.
It back -- is looking at.
I don't know what twenty years it just helped get out and say what he is not so far has not gotten that so much heat -- confidence high grade what are the chances that we just hear about a settlement.
That's a good question there's lot's of rumblings about that now.
I can only tell you what's kind of like in the -- I can't tell you that there's going to be one but there is and there is doing this all this talk about there's a potential settlement.
I would tell -- this for the government is actually settled a criminal case.
Not in in a way that does not prosecute.
He would have to in my in my view.
Give up about.
You know half of his net worth which is in that thought he would have to give up for a half billion or more because the government would turn around and say he'll -- just opulent settle.
You know he would probably have to -- in implode SEC capital right.
It it it and need to probably started to fund after that remember what they do it Milken and I'm not compared Steve -- -- -- -- because Steve -- has not been charged with anything.
OK but I'm just using this as an example.
When they when they have to Milken when he agreed to a -- great idea so was it he agreed it was -- -- agreed to plea agreement.
He pled guilty -- I think a year in jail a couple of years -- remember the big thing is they made him give a pair of his net worth which at the time was considered huge.
Two billion dollars he gave up a billion.
If there's a similar thing done with Colin.
He you know it's going to be a lot of money in other just not gonna you know -- -- he'll walk away.
-- we should point out this is what I'm saying is all speculation you know I don't know.
I don't know what's going on I do know that the government is worried.
About that July that -- life statue limitations running out in July in the summer sometime.
-- I know this from sources close to that -- didn't do it Justice Department that they know that that is an issue okay.
Try different -- so much.
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