Lets remember, this is the same SEC who gave out immunity to fraudsters just try to catch a billionarie and totally failed at it. Copperman is innoncent till proven otherwise
the SEC has 0 credibility i would side the cooperman before i would side with that shotty government agency
Here's Cooperman's letter to investors: https://www.scribd.com/document/324...er-to-Investors-9-21-16#fullscreen&from_embed
Cooperman cites the following: "Separately, we have been advised by the U.S. Attorney’s Office that it has not completed its investigation but has determined not to pursue charges for the time being pending the U.S. Supreme Court’s decision in Salman v. United States." I was curious as to why he would cite Salman, so I looked up the Salman decision from the appeals court. It's an interesting case, check it out: http://www.scotusblog.com/wp-content/uploads/2016/01/14-10204.pdf
Yes, that's probably why he sent the letter and made it public, citing the actual trades as well. The SEC claims he made $4 million, but that was the overall gain over time primarily from his bond purchases, and some stock that he bought in the single digits. Since he owned $150 million worth of stock and roughly 4 million shares, his cost basis was $37.50! Indeed, Cooperman claims "this particular investment turned out to be unsuccessful." Obviously the goal of insider trading is to make an illegal gain (and quickly), or to perhaps shield yourself from a huge loss by unloading before an anticipated move. From Cooperman's letter, it doesn't seem like the trades in question warranted either, given that he claims he didn't even sell the common for over a year after the Atlas sale. I don't think his attorneys will structure a denial of his awareness of the sale beforehand, because the Atlas executives can provide testimony that he was told of the pending sale. The attorneys will simply claim the trades don't qualify as "insider information" as they did in the Salman case. The SEC should just fine him for the improperly timed regulation filings for the other stocks he owned, and just be done with it.
The SEC is a joke but at least this time they aren't going after a kid who trades between school periods.
Majority of big guys belong to "expert networks", insider trading is very much alive and thriving. Nothing really surprising here. Some whales occasionally get a slap on a wrist, business as usual.
SEC Said to Demand That Cooperman Agree to Hedge Fund Suspension Agency sought $8 million in penalties in insider-trading case Money manager has said he did nothing wrong and won’t settle Share on FacebookShare on Twitter Share on LinkedInShare on RedditShare on Google+E-mail Wall Street’s top cop demanded that a resolution of its insider-trading case against Leon Cooperman include the billionaire investor accepting a temporary suspension from the hedge fund industry, according to people familiar with the matter. Before suing Cooperman last month, the U.S. Securities and Exchange Commission pushed the outspoken trader to agree to a settlement that would have required him to pay about $8 million in penalties and prevented him for some period of time from managing money for clients, said the people who asked not to be named because the meetings were private. Cooperman has shown no signs of wanting to negotiate, as he’s repeatedly denied wrongdoing and said his firm met with the SEC before it filed the lawsuit to explain why its allegations were “totally unwarranted.” Leon Cooperman Photographer: Christopher Goodney/Bloomberg Cooperman and SEC spokeswoman Judy Burns declined to comment. Cooperman, 73, has described his fight against the regulator as a battle for his legacy, arguing that any fine is irrelevant because it would be far less than he annually donates to charity. But an industry suspension could have significant consequences, potentially affecting his role at Omega Advisors Inc., the New York hedge fund he’s built over more than two decades through savvy stock picks... http://www.bloomberg.com/news/artic...that-cooperman-agree-to-hedge-fund-suspension Won’t Retire ... http://www.bloomberg.com/politics/a...ign-s-requests-to-do-self-opposition-research
Cooperman: Omega's AUM Down To $3.4B Following SEC Allegations Jan 5 2017 | 10:37pm ET Leon Cooperman’s Omega Advisors has seen assets under management drop to $3.4 billion in the wake of SEC allegations last year of insider trading, the famed hedge fund investor said on Thursday. Appearing on CNBC, Cooperman laid the blame for the AUM drop squarely on the regulator, saying the pending charges damaged his business. Omega managed approximately $5.2 billion around the start of last year. Cooperman, a former partner at Goldman Sachs known for an outspoken style, was one of the few large hedge fund managers to publicly recommend investors “hang tough” last January as stocks embarked on their worst annual start in recent memory. A pervasive bear market in stocks, he said at the time, was unlikely. Cooperman and Omega received a Wells notice from the SEC in March 2016 and he and Omega were charged with insider trading in late September. The allegations, which Cooperman has strenously denied, revolve around Omega’s 2010 investments in Atlas Pipeline Partners. "I was truly surprised at the destructive power the SEC has," Cooperman said during the CNBC interview. "They’ve done substantial damage to my business, and I think, in the end, for no reason." Cooperman’s funds, meanwhile, did well last year. Omega’s credit fund was up 16% in 2016, while the firm’s equity-only fund gained 10% and its diversified strategy 8%, according to Reuters. As for the broader market, Cooperman cautioned investors during the interview that the U.S. stock market was "fully valued" and that further gains over the next two months would make him bearish on equities. However, he also added that he sees the new year as a period of “normalization” under incoming president Donald Trump if some of the new administration’s policy goals, like lower taxes and reduced regulations, come to pass.