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The Hamptons Pool Defense

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Curbed Hamptons favorite Steven A. Cohen, $60M-Further-Lane-house-buying, $150M Picasso-owning head of hedge fund SAC Partners, is in a wee spot of trouble right now with the Securities and Exchange Commission over insider trading. Cohen himself is not accused of insider trading, but it is alleged that he ignored red flags that his employees, nine of whom have been accused of the crime, were illegally trading. In a report leaked to the media, lawyers advance what CNBC is calling the "Hamptons Pool" defense. That is, when a 2008 trade of Dell stock was made in Cohen's personal account at SAC, Cohen was too busy doing something else in the Hamptons--lying beside the pool thinking about taking a selfie with his inflatable swan, for example—to have read an email containing Dell insider information received ten minutes before. We're on Mr. Cohen's side. Hell, we can barely write a hundred-word blog post by the pool, much less run a $10 billion group of hedge funds. Last one in's a rotten egg!
· Steve Cohen and the Hamptons pool defense [CNBC]