Steven Cohen forced to face ex-wife's lawsuit

Steven Cohen Still

SAC Capital Advisors founder Steven Cohen was ordered by a judge to face questions in his ex-wife’s post-divorce fraud lawsuit about times he may have been ‘untruthful,’’ including during the government’s insider-trading probe of his hedge fund.

Bloomberg News reports that Patricia Cohen sued her ex-husband in 2009 alleging that he concealed a $5.5m payment he received from real estate deal pending at the time of their 1990 divorce. Steven Cohen today lost a preliminary bid to throw out the case, which was reinstated by a federal appeals court last year after being dismissed in 2011.

Cohen can be questioned under oath by his ex-wife’s lawyers about the government’s sprawling insider-trading investigation of SAC Capital, U.S. District Judge Loretta Preska in Manhattan ruled. Preska said it goes to Cohen’s credibility.

“With regard to prior instances of untruthfulness, counsel may do that,” she said during an hour-long hearing. “You’re certainly entitled to question the witness about prior acts you allege are untruthful.”

To access the complete Bloomberg News article hit the link below:

SAC’s Cohen Must Face Ex-Wife’s Suit, Truthfulness Query

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