Further Circumstantial Evidence Of Pervasive Insider Trading By SAC?

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Fri, 02/11/2011 - 09:10 | 952362 Alcoholic Nativ...
Alcoholic Native American's picture

There is no such thing as traitors or insider trading in a post 9/11 world. Duh!

Fri, 02/11/2011 - 09:24 | 952377 AN0NYM0US
AN0NYM0US's picture

Maybe Steve should buy ZH

 

To be sure, all of this continues to be nothing less than circumstantial evidence of insider trading.

Fri, 02/11/2011 - 09:29 | 952383 Michael
Michael's picture

About a million times over he could. Here is where the SEC can recoup fines.

Art collector
Cohen began collecting art in 2000, and over the past several years has become a prominent collector, appearing on Art News magazine's "Top 10" list of biggest-spending art collectors around the world each year since 2002, and Forbes magazine's "Top Billionaire Art Collectors" list in 2005. To date, Cohen has bought around $700 million worth of artwork; in 2003, the New York Times reported that in a five-year period, Cohen spent 20% of his income at art auctions.

Cohen owns between 4.7% and 5.9% of the stock of Sotheby's auction house, which has been described as a "significant stake."

He is reportedly building a private museum for some of his artwork on his Greenwich property. In the winter of 2005, it became known that in 1999 Cohen had bought Edvard Munch's "Madonna". Reportedly, this was for $11.5 million, a record price for any Munch painting to this date.

His tastes in collecting changed "quickly" from Impressionist painters to contemporary art. He also collects 'trophy' art—signature works by famous artists—including a Pollock "drip" painting from David Geffen for $52 million and Damien Hirst's The Physical Impossibility of Death in the Mind of Someone Living, a piece that the artist had bought back from Charles Saatchi for $8 million. In the last two years, he reportedly paid $25 million each for a Warhol and a Picasso. He is a top patron of the Marianne Boesky art gallery.

In 2006, Cohen remarked that repairing his suspended shark artwork, a cost estimated to be a minimum of $100,000, was an "inconsequential" expense. Since the shark itself is over 10 years old, it has begun to rot and requires replacement. The replacement shark has already been caught; once the exhibit is fixed, Cohen will have it moved into his SAC office. Cohen has also placed Marc Quinn's Self, a head sculpture made of frozen blood, in the SAC lobby.

In addition, in 2006 Cohen bought a landscape entitled "Police Gazette” by artist Willem de Kooning for $63.5 million from David Geffen. Also in 2006, Cohen attempted to make the most expensive art purchase in history when he offered to purchase Picasso's Le Reve from casino mogul Steve Wynn for $139 million. Just days before the painting was to be transported to Cohen, Wynn, who suffers from poor vision, accidentally thrust his elbow through the painting while showing it to a group of acquaintances inside of his office at Wynn Las Vegas. The purchase was cancelled, and Wynn still holds the painting. In November 2006, Cohen purchased another Willem de Kooning painting, Woman III, from David Geffen for $137.5 million. 

Fri, 02/11/2011 - 09:42 | 952399 Alcoholic Nativ...
Alcoholic Native American's picture

Redistribution of wealth! You filthy socialist!

Fri, 02/11/2011 - 11:36 | 952680 More Critical T...
More Critical Thinking Wanted's picture

 

Redistribution of wealth! You filthy socialist!

Do libertarians recognize redistribution of wealth of ... criminals? Or is the libertarian ban on redistribution of wealth holy and inviolable?

On the other hand, this is precisely the easiest evidence to cover up in what even the SEC is starting to realize is nothing less than a "mosaic theory" of information arbitrage, which also happens to be a great ploy to divert legal attention from the SEC's incompetent lawyers.

Well, I'm all for a bit of SEC bashing (they were particularly inept during the Bush years when insider trading was rampant and not a single big hedge fund was prosecuted), but is there anything the Obama/Shapiro SEC lawyers could have done here, in addition to the (unprecedented, for the SEC) FBI wiretaps they used?

I mean, beyond lobbying Congress to abandon the cherished libertarian legal concepts of "presumption of innocence", "beyond reasonable doubt" and the introduction of new laws that would permit the summary execution of traders suspected of insider trading.

That would decimate NASDAQ volume I'm sure :-)

Also, I'm curious, what is the libertarian position here - should filthy regulation like the ban on insider trading be abolished and should the fantastic libertarian anti-regulatory laissez-faire stock trading environment of the roaring twenties be reintroduced, which reached its world-famous pinnacle of prosperity in 1929?

 

Fri, 02/11/2011 - 09:22 | 952373 AR
AR's picture

TYLER (and staff):  Once again, you lead, and produce very good work.  The thought that crossed our mind this morning reading this, was... now we fully understand why it is smart to keep a low profile.  In our shop, we have a very simple rule, do it right, and honest, no shortcuts.  It may take a little longer to accumulate the rewards, but, one never is forced to look over your shoulder trying to cover up misdeeds.  Unfortunately, everyone thinks there are shortcuts to the top.  There is not.  Hence, SAC may discover this in the coming year or two.  Regulators, and prosecutors always need "high profile" players to make examples of.  Mr. Cohen may find it difficult (and expensive) to avoid certain damage.  The rooster is always responsible for the hen house - ultimately.  A run of assets can, and will, quickly manifest upon itself if Stevie is remotely found to have knowledge of events, or is in any way complicit.  Good luck and keep up the good reporting.

Fri, 02/11/2011 - 10:28 | 952500 Arch Duke Ferdinand
Arch Duke Ferdinand's picture
black swan on Feb 11, 6:25 AM said: "Socialism has failed and this is no longer a class war between the rich and the poor."

So Armstrong would have us believe that Blankfein, Dimon, Immelt and Buffet, along with the Prime Dealers, the people who control the Federal Reserve and control the nation, are socialists. Who knew? That the powers behind big oil, big pharma, big insurance, big agriculture and the military industrial complex are all socialists. Who knew. That the wealthiest 400 Americans, who have more assets than one half, or 150 million Americans, are also socialists. Who knew? If what America has become comes from "a war between the rich and the poor", then the war is over and the rich have won.

Since Armstrong doesn't know the difference between a nation run by socialists and a nation run a kleptocratic mafiocracy, here are some examples of each. Norway is a nation run by socialists. The US and Egypt are nations run by kleptocrats. In the US, the losses incurred by the Wall Street banks are socialized amongst what is left among the the American middle class, while the tax money confiscated from that middle class is privatized among Wall Streets elite. Meanwhile, America's labor force has either been outsourced, or it has been replaced by those who are encouraged to slip over our borders. That is not socialism. That is corporatism. Kleptocracy... http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/02/kleptocracy-government-characterized-by.html

Fri, 02/11/2011 - 10:35 | 952515 Miss Expectations
Miss Expectations's picture

"This is before it was known that SAC is indeed the chief target in the SEC's biggest insider trading bust in history."

Does this mean that some SEC Retards Clamber Aboard Zero Hedge's (big) Bus?

Fri, 02/11/2011 - 11:01 | 952595 sharkbait
sharkbait's picture

What is most disgusting is the preening "Master of the Universe" arrogance these jerks have about how brillianmt they are when all they are doing is trading off tomorrow's newspaper!  what a bunch of pathetic stuffed shirts!

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