- Associated Press - Thursday, May 19, 2016

NEW YORK (AP) - A judge has dismissed a lawsuit filed by the ex-wife of billionaire hedge fund manager Steven Cohen that had alleged he lied about his worth to cheat her out of millions of dollars during their divorce decades ago.

The judge said Patricia Cohen had failed to prove her claim that her former husband and his brother, his accountant at the time, had understated the value of a real estate transaction during their divorce, which was finalized in 1990. Patricia Cohen had alleged that her husband hid more than $5 million from the 1986 real estate deal.

U.S. District Court Chief Judge Loretta Preska, in Manhattan, said that there was no evidence Steven Cohen had hidden any assets and that the statute of limitations for Patricia Cohen’s claims had expired because the claim would’ve needed to be filed within six years from the date a fraud occurred or two years from when she found out about it.

Steven Cohen, who lives on a sprawling estate in Greenwich, Connecticut, is one of the highest-profile figures in American finance and one of the country’s richest men. He has been among the handful of upper-tier hedge fund managers who pull in about $1 billion a year in compensation.

Patricia Cohen’s attorney, Gerald Lefcourt, said he disagreed with the judge’s ruling and his client could choose to appeal it.

“If all the evidence were put before a jury we believe a jury would find for Mrs. Cohen,” he said.

Steven Cohen said through a spokesman that he was “pleased with the court’s thorough and thoughtful decision.”

In January, the Securities and Exchange Commission said Steven Cohen had entered into a civil settlement with federal regulators barring him from managing the money of others for two years. The settlement came after the SEC alleged he had failed to prevent insider trading at his firm, SAC Capital Advisors.

Cohen, who neither admitted nor denied the SEC’s allegations, was not fined under the agreement. The company had agreed in 2013 to pay $1.8 billion after pleading guilty to criminal fraud charges.

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Follow Michael Balsamo on Twitter at https://twitter.com/MikeBalsamo1.


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