Mark A. Kornfeld quoted in article “SAC Capital Deal with U.S. Prosecutors Gets Closer: Source”Thomson Reuters 10/17/13
Below is an excerpt:
The SEC action could bar Cohen from managing money for outside investors, though it is not yet clear if this punishment will be part of the settlement. While investors have already requested most of their money back from the firm, banning Cohen from managing outside capital or forcing him to shut down the firm would be symbolic for the industry and the government, said Mark Kornfeld.
However, even if Cohen is not banned from managing money, lawyers said an admission of wrongdoing from SAC in conjunction with a hefty fine would be a victory for the government. "It will be a historic win for the prosecution, with the largest monetary penalty in history for an insider trading scandal," Kornfeld said. "If they can extract an admission of wrongdoing from Mr. Cohen, who is one of, if not the world's most well known hedge fund managers, that is a significant development."
Originally published in Thomson Reuters, October 17, 2013