Cohen May Have Warned Friend Of Federal Probe Of Stamford Fund

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Steven A. Cohen of Greenwich, the manager of SAC Capital hedge fund in Stamford, was aware he was being investigated by federal officials, according to a recent report. Photo Credit: The Daily Voice File Photo

GREENWICH, Conn. – Billionaire hedge fund manager Steven A. Cohen of Greenwich warned a friend that federal authorities were gathering evidence about insider trading, according to a recent report.

A story in the New York Times said Cohen, the manager of SAC Capital Advisors in Stamford, told Richard Grodin to be careful about speaking with a former trader who Cohen believed might be cooperating with federal authorities. Grodin, a resident of Larchmont, worked at SAC Capital until  2004.

The conversation between Cohen and Grodin, the story says, suggests Cohen and other hedge fund industry insiders were aware of the investigation into inside trading. Federal investigators have been trying to link Cohen to insider training, but he has not been accused of any criminal wrongdoing.

In November, SAC Capital pleaded guilty to insider trading and agreed to pay a $1.8 billion penalty. Last month, Michael Steinberg, a portfolio manager of Sigma Capital Management, a division of Stamford-based hedge fund SAC Capital, was found guilty in Manhattan federal court for his participation in an insider trading scheme.

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