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Steve Cohen Pleads The Fif , Declines To Testify Before A Grand Jury

Tyler Durden's picture


If there is a better way to admit guilt, and several decades of ill-gotten billions courtesy of now legendary "information arbitrage", coupled with some heavy expert network hot tips and one year contract retentions of every biotech expert from here to Calcutta, than pleading the Fifth, we have yet to hear it. We are confident, however, that SAC FoF investor Anthony Scaramucci will provide some truly memorable examples. Or if not that, then at least a few guest passes to his "fun" and brilliant "Hooters for Hedgies" concept.

From Bloomberg:

Steven A. Cohen, summoned to testify before a grand jury about allegations of insider trading at his SAC Capital Advisors LP, invoked his Fifth Amendment right not to incriminate himself, said two people familiar with the matter.


It wasn’t clear if Cohen, 57, had invoked his right to testify before the grand jury or had been excused from appearing after informing prosecutors of using the privilege, said the people, who asked not to be identified because the information is private.


“I wouldn’t have recommended that he goes in to testify given how this looks like the government is trying to build a case around Cohen, rather than investigate one,” said Thomas Gorman, a partner at law firm Dorsey & Whitney LLP in Washington. “It just seems that the government is reaching for a theory to support their beliefs.”


The $15 billion firm and its billionaire founder have moved to the center of a U.S. multi-year investigation of insider trading on Wall Street since former portfolio manager Mathew Martoma was charged in November in what prosecutors called the biggest insider-trading scheme in history.


While SAC paid a record $602 million to settle a civil case related to Martoma’s trades, the government has shown no sign of ending its scrutiny of the firm. SAC last month told clients it will no longer cooperate unconditionally with the government.


Jonathan Gasthalter, a spokesman for SAC Capital at Sard Verbinnen & Co., declined to comment, as did Jerika Richardson, a spokeswoman for U.S. Attorney Preet Bharara in Manhattan.


Cohen hasn’t been accused of any wrongdoing and has said he acted appropriately. Martoma has pleaded not guilty and will go on trial Nov. 4.


If a “target” of a government investigation refuses to testify on Fifth Amendment grounds, they don’t normally need to appear before a grand jury, according to government manual. A “target” is a person as to whom the prosecutor or the grand jury has substantial evidence linking him or her to a crime and who is considered to be is a putative defendant, the manual says.

Of course, Cohen's strategy is not all that novel...


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Fri, 06/28/2013 - 16:53 | Link to Comment Midasking
Midasking's picture

Couldn't happen to a nicer guy....

Fri, 06/28/2013 - 16:54 | Link to Comment ACP
ACP's picture

I thought it was "Da Fif"?

Now I'm confused.

Fri, 06/28/2013 - 20:08 | Link to Comment tom a taxpayer
tom a taxpayer's picture

It is heart-warming to see prosecutors raise their sights above Martha Stewart insider trading to investigate Cohen and Corzine. But where are the prosecutors on the Wall Street crimes of the century?  Cohen and Corzine, big as they are, are a side show.

The prosecutors, by not prosecuting the TBTF and their criminal aider and abettors in federal regulatory agencies and Congress for the greatest financial crimes in U.S. history are allowing the rampant Wall Street criminal activity to continue. We need balls-to-the-walls prosecutions of Credit Rating Agencies, Countrywide, the mortgage industry, the appraisers,Freddie and Fannie, Citi and the big banksters, Goldman Sachs (including Hank Paulson) and other Wall Street banks, AIG, and federal co-conspirators at U.S. Treasury (including Hank Paulson, Tiny Tim), SEC, OTS, Federal Reserve, especially FRBNY( Tiny Tim, Dudley-Do-Wrong), and those members of Congress who aided and abetted the greatest financial crimes in U.S. history.

Justice demands long-overdue prosecutions of Countrywide, the ratings agencies, Goldman Sachs, Wall Street con artists and every one in between in these overlapping RICO criminal enterprises. We need 20 years-to-life hard time prison sentences for the hundreds convicted. We need RICO confiscations of the hundreds of billions in illegal "profits" from the criminal enterprises of the banks, mortgage industry, and Wall Street Mafia.

Because of the huge backlog of RICO cases, the prosecution and the courtroom should be modified to process the mass trials in style of the Maxiprocesso (Maxi Trials) of the Mafia in Sicily during the 1980s that resulted in hundreds of defendants convicted.


Sat, 06/29/2013 - 11:30 | Link to Comment gmrpeabody
gmrpeabody's picture

It's all only for show and to let time pass....

Fri, 06/28/2013 - 16:53 | Link to Comment Meat Hammer
Meat Hammer's picture

Let's plead the Fif on our taxes.  Make them prove we broke the law instead of us proving to them that we didn't.

Fri, 06/28/2013 - 17:18 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

They'll prove it.

Fri, 06/28/2013 - 17:22 | Link to Comment Citxmech
Citxmech's picture

"Innocent until proven guilty" only works (sort of) for criminal charges.  In administrative actions, your are basically guilty until you can exonerate yourself beyond any possible doubt.

Fri, 06/28/2013 - 17:28 | Link to Comment Meat Hammer
Meat Hammer's picture

Stop pissing in my corn flakes!

Fri, 06/28/2013 - 20:45 | Link to Comment msmith9962
msmith9962's picture

you could just tell them you forgot to pay your taxes.

Fri, 06/28/2013 - 21:13 | Link to Comment Monedas
Monedas's picture

"I don't remember ?" .... Hillary "Rod in her Ham" Clinton

Fri, 06/28/2013 - 17:23 | Link to Comment Nobody For President
Nobody For President's picture

I just wrote the IRS a nice letter and asked to be removed from their mailing list. 

Politeness counts.

Fri, 06/28/2013 - 17:33 | Link to Comment Dr. No
Dr. No's picture

Dear Taxpayer.

We would like to scheule an Audit.  Please bring all copies of your tax returns, in triplicate, from the past 10 years.

Sat, 06/29/2013 - 10:50 | Link to Comment monad
monad's picture

Its been done. Retroactive serf shakedown & public executions. Google 5th amendment tax return.

Fri, 06/28/2013 - 17:00 | Link to Comment MsCreant
MsCreant's picture

If .gov wanted to get any of these fucking terrorist banksterz/traderz for realz they would just sic the NSA on them.

Fri, 06/28/2013 - 17:03 | Link to Comment Richard Whiskey
Richard Whiskey's picture

Plead the fifth.

Fri, 06/28/2013 - 17:06 | Link to Comment buzzsaw99
buzzsaw99's picture

Praise be, for he who giveth shall be without sin for ninety days, or your money back. (1:55)

What I do is operate a trust fund for the Lord.

Fri, 06/28/2013 - 17:06 | Link to Comment frippy
frippy's picture

Bush's fault.

Fri, 06/28/2013 - 17:08 | Link to Comment Jim B
Jim B's picture

Where is Corize? 

Fri, 06/28/2013 - 17:13 | Link to Comment buzzsaw99
buzzsaw99's picture

Jon Jon didn't technically break the law. What he did was more along the lines of a segregation problem, and, as we all know, segregation is morally wrong! Can I get an AMEN! up in heya!

Fri, 06/28/2013 - 19:08 | Link to Comment Dactuck
Dactuck's picture

AMEN!  Brother. 

Fri, 06/28/2013 - 17:19 | Link to Comment Kiss My Iceland...
Kiss My Icelandic Ass's picture



"If there is a better way to admit guilt ...  than pleading the Fifth, we have yet to hear it."


Can't agree with that at all.  Everyone should always plead the fifth when speaking to police or lawyers. In fact, because of a recent ruling of the Supreme Court, if you don't explicitly plead the fifth, your right to remain silent is not recognized ! Remaining silent and not co-operating with the law may be considered as impying guilt unless you plead the fifth. So if you remain silent and don't plead the fifth, you're guilty. If you remain silent and do plead the fifth, you're also guilty. Another nail in this coffin formerly known as the Land of the Free. This game is over folks.

Fri, 06/28/2013 - 17:22 | Link to Comment francis_sawyer
francis_sawyer's picture

just tell them you don't 'UNDER~stand'...

Fri, 06/28/2013 - 17:24 | Link to Comment Miss Expectations
Miss Expectations's picture

Here you old Rockford Files with Jim called before a grand jury...You gotta Plead the 5th right away...

Fri, 06/28/2013 - 17:26 | Link to Comment Nobody For President
Nobody For President's picture

He can plead the fifth on the grounds he is richer than you are.

Fri, 06/28/2013 - 17:36 | Link to Comment buzzsaw99
buzzsaw99's picture

The Dimon Defense. Brilliant!

Fri, 06/28/2013 - 18:01 | Link to Comment Fuku Ben
Fuku Ben's picture

Will corporate parties be imprisoned for contempt of court like journalists that don't testify before grand juries?

Fri, 06/28/2013 - 18:13 | Link to Comment world_debt_slave
world_debt_slave's picture

We've given too much power to the cabal in DC, so it is up to us to take it back.

Fri, 06/28/2013 - 18:48 | Link to Comment kragsquest
kragsquest's picture

You jokers are now requiring mixed case and punctuation in passwords?  Who is going to try to hack these stupid accounts?

Fri, 06/28/2013 - 21:20 | Link to Comment Yen Cross
Yen Cross's picture

     Looks like a 'Ticker Symbol' from some "NASDAQ" pump shop, before they raised the exchange (listing) capital requirements.

Fri, 06/28/2013 - 23:45 | Link to Comment Judge Crater
Judge Crater's picture

Cohen should also have pleaded the 4th Amendment, that he and his firm were the subject of illegal data-mining and wiretapping by the NSA.  Who knows how many of these insider trading Wall Street prosecutions have their roots in NSA anonymous "tips" made to a contact in the U.S. Attorney's office?  Raj Rajaratnam of the Galleon Group should be on the horn to his attorneys to file a motion that prosecutors in his case reveal all communications they had with the NSA or any of the NSA's cut-outs. 

Sat, 06/29/2013 - 00:49 | Link to Comment mark mchugh
mark mchugh's picture

I think we'd all agree that most of these hedgies would do (and have done) anything to gain an edge.  So the question becomes why'd they pick Cohen?

The best answer I can offer is he can actually meet redemptions.  In other words, the money's all there.  Some of these other guys, I'm not so sure.

The DOJ would never go after a big fish who couldn't meet redemptions.  That would set off a liquidation panic that would crash the market yet again, and TPTB would never risk that.  

Sat, 06/29/2013 - 01:37 | Link to Comment monad
monad's picture

I should have gone to law school, but I chose instead to be a productive member of society.
It's not too late.

Sat, 06/29/2013 - 11:27 | Link to Comment AxiusAtlanta
AxiusAtlanta's picture

"If there is a better way to admit guilt........than pleading the Fifth, we have yet to hear it."


Author is a complete dumb ass.....  only a dumb ass would not invoke your 5th rights.


here's a refresher for those that feel the can go in and talk their way out of trouble

Sat, 06/29/2013 - 16:14 | Link to Comment LetsGetPhysical
LetsGetPhysical's picture

He's like, "fuck it. if the IRS can do it so can I" 

Do NOT follow this link or you will be banned from the site!