Things seem to be coming down on the big guy all at once. As if the SAC Capital founder’s plate wasn’t full enough with the Galleon investigation getting up in his business and the crazy tranny trader thing, now Patricia Finke, Steve Cohen’s ex-wife of ages ago and the mother of his two children, is suing him for $300 million, saying he hid funds from her during their marriage, and accusing him of running a racketeering scheme.
She claims her former husband lied under oath about his net worth, conducted mail and wire fraud and concealed from her and the Supreme Court of New York millions of dollars that he possessed in 1990, thus reducing her divorce settlement.
And she’s accusing him of insider trading.
She claims in her suit that in 1985, while they were married, Mr. Cohen confessed to her that he received inside information on the takeover of RCA by General Electric. When she asked him if trading on such information would be illegal, Mr. Cohen said that that he knew that the source was a former classmate of his from Wharton. But he obtained the information from a mutual friend, so he was not involved in insider trading.
At least she didn’t give away his secret about wetting the bed. Yet. Amazingly, Finke’s lawyer says she was inspired to prepare the case after seeing a 60 Minutes special about her ex-husband. Just like would happen in the movies.