SEC: Steve Cohen is a horrible bossJuly 19, 2013: 2:47 PM ET
SEC files civil case against hedge fund titan.
FORTUNE -- Apparently teflon sometimes can melt in the heat.
The Securities and Exchange Commission today filed civil charges against hedge fund titan Steve Cohen, alleging that he failed to "reasonably supervise" two employees at his SAC Capital. The pair -- Mathew Martoma and Michael Steinberg -- both had been previously charged with insider trading.
"Hedge fund managers are responsible for exercising appropriate supervision over their employees to ensure that their firms comply with the securities laws," said Andrew Ceresney of the SEC's enforcement unit. "After learning about red flags indicating potential insider trading by his employees, Steven Cohen allegedly failed to follow up to prevent violations of the law."
SAC already had agreed to pay a record $615 million to settle insider trading charges, but the SEC's latest action would seek to bar Cohen from overseeing investor funds."
Greenwich, Conn.-based SAC is vowing to "fight this charge vigorously," adding that it has "no merit."
Read the full SEC complaint below: