Fri July 26, 2013
Brown Trustee Implicated in SEC Charges
University officials are not saying whether they will keep Steven Cohen as a member of the Brown Corporation, after the company he founded, SAC Capital Advisors, was charged with widespread insider trading.
Cohen himself is not named in the federal indictment, but the Securities and Exchange Commission has filed civil charges against him, accusing him of mismanaging the company.
SAC Capital denies the accusations, saying Cohen acted appropriately at all times.
The criminal charges against SAC Capital accuse the company of promoting a culture where insider trading flourished. As the Los Angeles Times reports, Cohen lived a lavish lifestyle from the billions of dollars he personally reaped from the hedge fund, one of the largest on Wall Street.
Brown University had no immediate comment on how the lawsuit would affect Cohen's position on the Brown Corporation, the university's governing board.
Scott MacKay Commentary