Billionaire Steve Cohen Ducks Ex-Wife’s Suit

     MANHATTAN (CN) — There will be no fraud trial for investor Steven Cohen because the billionaire’s ex-wife Patricia has not gathered enough evidence to drag him before a jury, a federal judge ruled.
     Steven and Patricia Cohen’s nine-year marriage fell apart in 1988, shortly after the billionaire founded SAC Capital Advisors, a group of hedge funds.
     Three years later, Patricia asked for more child support, and accused her ex of having filed a separate income tax return the year after he filed for divorce to hide “substantial income” during the negotiations of their separation.
     The former couple’s financial statement listed their net worth at $17 million at the time of the separation, and it disclosed a failed $8.7 million investment in Queens co-op apartments with Steve Cohen’s friend Brett Lurie.
     Patricia claimed it took years for her to learn that Steve had won a $5.5 million settlement from Lurie over that investment.
     She sued her ex; his brother, Donald Cohen; and Lurie for violations of federal anti-racketeering law and fraud in December 2009.
     After U.S. District Judge William Pauley III dismissed the RICO allegations in 2014, and Chief U.S. District Judge Loretta Preska closed the book on the whole case Thursday.
     Preska found that Patricia Cohen did not have evidence to back up her claims.
     “There is insufficient evidence of the alleged payments to Steven,” she wrote. “Patricia has not produced evidence of any bank account, cancelled checks, property, or other assets belonging to Steven which he did not disclose to her in his 1988 financial statement.”
     Preska likewise blew through Patricia Cohen’s allegation that SAC paid Lurie an additional $3 million, which Lurie immediately “endorsed back” to Steven Cohen.
     “Even if the court credited Lurie’s hearsay that these alleged round-trip payments happened, it means only that Steven’s gross investment with Lurie was $10.5 million rather than $7.5 million,” the 33-page opinion states. “This is irrelevant to Patricia’s claim, however.”
     In either event, Preska noted, Steven Cohen’s net investment with Lurie would have remained unchanged at $7.5 million.
     Patricia Cohen’s attorney Gerald Lefcourt said that he disagrees with the outcome.
     “If all the evidence were put before a jury we believe a jury would find for Mrs. Cohen,” Lefcourt said in an email. “Fortunately, she can choose to pursue an appeal.”
     Steven Cohen’s attorney has not returned an email seeking comment.

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