Embattled hedge-fund manager Steve Cohen's ex-wife has pulled a do-over on her vengeful attempt to ruin him: After withdrawing a lawsuit accusing him of insider trading back in the 1980s, she's filed a new one seeking control of his company.
According to the New York Post, Patricia Cohen, who divorced Steve in 1992 after bearing two children with him, claims (strangely!) in a new complaint that she is entitled to "a substantial, if not controlling, interest" in Cohen's firm SAC Capital because it was built from seed capital he allegedly hid from her during their divorce proceedings two decades ago. Patricia made a splash back in December with a different lawsuit in which she claimed Steve profited from insider knowledge about General Electrics 1985 takeover of RCA. She soon fired her lawyer and withdrew that complaint.
But now she's back, this time with Gaytri Kachroo representing her. Among Kachroo's other clients is Harry Markopolis, the former trader who discovered Bernie Madoff's fraud years before the SEC caught on. Given Patricia's previous accusations, the fact that an attorney steeped in SEC law and known for representing the guy who, had anyone had listened to him, would have blown the lid off the largest financial fraud in history is now pursuing Cohen is...interesting. Especially because Cohen, who made $1.4 billion last year, has been repeatedly mentioned in coverage of ongoing FBI investigations into insider trading at the Galleon Group.
But Patricia's legal strategy should be taken with a grain of salt. According to this New York magazine profile, she and Steve have a complicated and exhausting relationship, and she's not exactly a spurned ex: Steve was sending upwards of $400,000 a year her way decades after their divorce. She's been more of a kept woman than a wronged spouse.