Steven Cohen, the founder and chief executive of hedge fund SAC Capital Advisors and the target of a high-profile civil case launched last week by the U.S. Securities and Exchange Commission, released a 46-page white paper blasting the regulators and providing an argument to counter the action against him.
Cohen is charged with failing to supervise some of his traders in relation to their trades for the firm in Elan Corp. (NYSE:ELN) and Wyeth, among others.
In the paper, Cohen attorneys Martin Klotz, Michael Schachter, Daniel Kramer and Theodore Wells Jr. wrote, " Steve Cohen did nothing wrong, and any fair review of the evidence will show that the SEC’s charges are unfounded. The evidence shows that Cohen had every reason to believe that the employee involved in the Elan and Wyeth trades, Mat Martoma, reached his conclusions based on wholly legitimate information sources."
Regarding Dell Corp. (Nasdaq:DELL), another stock involved in the suit, his lawyers claimed that, "The SEC’s allegations concerning Dell are based on a single email, the 'second hand read' email, forwarded to Cohen’s email account on August 26, 2008. There is no evidence that Cohen read the 'second hand read' email, or spoke to anyone about the email."