Federal regulators have barred the billionaire investor Steven Cohen from managing commodity hedge funds until 2018, in a settlement that comes on the heels of a similar agreement with the Securities and Exchange Commission.
In January, Cohen agreed to a two-year ban on managing outside money as part of a settlement with the SEC, which had charged him in 2013 with failing to supervise two traders who were later convicted of insider trading.
Commodities regulators based their settlement almost entirely on the SEC’s order. Securities enforcers found Cohen ignored red flags and failed to promptly investigate whether a portfolio manager, Matthew Martoma, was engaged in insider trading. Martoma began serving a nine-year prison sentence in November 2014.
Dan Nathan, a former deputy director of enforcement at the CFTC, said Tuesday’s settlement piggybacked on the SEC’s enforcement action.