Dogged by SEC, billionaire goes shopping
Steven Cohen's hedge fund is paying $616 million to settle insider-trading claims. And he's on a massive spending spree to boot.
Cohen hasn't personally been charged with a crime, but the Securities and Exchange Commission is watching his every move. And so he's doing what just about no one else in this situation would do: blowing hundreds of millions of dollars on a massive spending spree.
Cohen, 56, is paying $60 million for an oceanfront mansion on Long Island, The New York Times reports. The 10,000-square-foot property is just down the road from a home he already owns. Cohen is also trying to sell his Manhattan apartment for $115 million.
At the same time, Cohen managed to buy a Picasso painting he has coveted for years. He reportedly paid $155 million to take "Le Rêve" off the hands of Steve Wynn, CEO of Wynn Resorts (WYNN).
Cohen almost bought the painting in 2006 for $139 million, but the deal collapsed after Wynn accidentally put his elbow through it and had to send it to an art restorer, The New Yorker reported.
Cohen's troubles with the SEC probably haven't ended, even though his hedge fund, SAC Capital Advisors, is paying regulators $616 million to settle insider trading accusations. Since Cohen owns 100% of SAC, the fine is essentially coming out of his pocket, The Times reports. But at a net worth of nearly $10 billion, Cohen will hardly feel the pain.
Some Twitter users are finding his extreme spending, particularly as the SEC shines a bright light on his and his firm's finances, a bit curious.
"Does anyone else think this Steve Cohen spending spree is a bit of a thumb in the eye to the SEC?" asked CNBC blogger John Carney.
Asset manager Jeff Macke referenced the "Marge vs. the Monorail" episode of "The Simpsons," in which a judge fined Mr. Burns $3 million for his unbelievable contempt for human life. "Oh, and I'll take that statue of justice, too," Burns said to the judge, referring to the statue on his desk. "Sold!" the judge responded.
Spending it on yourself must be so un-rewarding after a while.
I certainly wouldnt know what thats like.
Sharing with people who struggle ?
Hey now thats a concept, Steven.
Think about it. Might feel good.
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Reports say the generous benefactor behind the huge gratuities is a former PayPal executive.
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