Oh boy, looks like Steven A. Cohen is in trouble and his castle may soon be crumbling in the sand, figuratively of course.
According to the Times, his ex-wife Patricia, filed a lawsuit against Cohen claiming he scammed millions of dollars during their 1988 divorce by hiding money from her and- gasp- the IRS too, in sketchy real estate deals. This lawsuit follows Cohen’s recent permit request to expand his already palatial mansion by 1,000 feet.
To add to the allegations Patricia also stated, “that in 1985, while they were married, Mr. Cohen confessed to her that he received inside information on the takeover of RCA by General Electric. When she asked him if trading on such information would be illegal, Mr. Cohen said that that he knew that the source was a former classmate of his from Wharton. But he obtained the information from a mutual friend, so he was not involved in insider trading.”
Hell hath no fury like a woman scorned, and this woman is airing out all his dirty laundry. Take for example the allegation that he hid the almost million dollars in real estate deals that she made, so that she couldn’t touch it during their divorce settlement. Patricia told the Times she is waiting until he has to face a jury for all that he has done.
As if that weren’t enough Cohen and his company are also under a watchful eye. Notorious FIB investigator B.J. Kang is all over the investigation regarding SAC Capital Advisors and the insider trading ring that involved ex employees.
What an ordeal for Cohen, especially since he values his privacy. Reports from a 2003 Business Week profile suggested that he is so private that view from the street is obscured by a 12 foot high wall, and that his home security system alerts when someone enters and leaves a room. Paranoid much? Perhaps his reclusiveness is a symptom of something he is hiding. It will be interesting to see how all this turns out. By the looks of it he better enjoy his 36,000 square foot home while he still has it.