Michael Bowe Comments on SAC Capital’s Plea Agreement and Historic Settlement
Kasowitz partner Michael Bowe was interviewed on Bloomberg TV regarding the indictment of SAC Capital Advisors LP and their recent plea agreement. SAC Capital has agreed to plead guilty to charges that the firm employed a handful of employees who engaged in insider trading, and will also acknowledge that they turned a blind eye to insider trading. The hedge fund will pay $1.8 billion, the largest insider trading fine in history, to settle the charges, and has also agreed to stop managing outside investor money. Bloomberg TV and Michael Bowe, who represented Fairfax Financial Holdings in a lawsuit against SAC for similar charges, affirm that this plea agreement does not provide immunity for SAC’s founder, Steven Cohen, and is only a resolution for the current charges against the company as a whole. Bowe states, “The fact of the matter is the company – that’s [Cohen’s] company that he runs – just pled guilty to every count in an indictment that says they are a corrupt organization that engages this as a matter of practice, and then they issue a statement saying it was just a handful of people. There’s a complete disconnect here.” As Bowe and the videos reiterate, Cohen is not immune from these charges and the government has made it clear that they are not done with the investigation and will continue to pursue Cohen, even though they have been unable to make a criminal case against him thus far. Cohen still faces SEC civil charges for failing to supervise his employees.