Steve Cohen, who ran one of the most successful hedge funds, SAC Capital, until it had to pay $1.8 billion to the federal government for insider trading, is being taken to court by his ex-wife Patricia Cohen, who charges that during the marriage, he swindled her out of money that was hers to start SAC Capital, according to the New York Times.
Patricia claims that her then husband cheated her out of money that was rightfully hers and owes her millions of dollars. Her lawsuit is bankrolled by Asta funding, and Balance Point Divorce Funding who take part of the proceeds from fund recovered from clients. Balance Point gave Patricia Cohen $1.2 million to continue her litigation in 2013.
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Cohen says her husband had hidden assets in a real estate deal, assets that had also belonged to her. She claims she is entitled to half of the $5.5 million her then husband made in the deal plus interest accrued over 25 years. Cohen also says the money he took from her was used to start his hedge fund in 1992.
Since having gotten in trouble with SAC Capital, Cohen now runs a hedge fund called Point52 which trades $10 billion, mostly from his own money. If Patricia wins, this should be a lucrative award for her as well as for Asta and Balance Point.
