Thursday, December 17, 2009

Hedge Fund Manager Having Ex-Wife Issues

One of the world's most successful hedge fund managers, Steven Cohen, is being sued by his ex-wife for at least $100 million. Patricia Cohen, who was married to Mr. Cohen from 1979 until their separation in 1988, claims she was stiffed in their divorce settlement. What makes this case more interesting than the average, run-of-the-mill, angry ex-wife of a rich guy, is that she is also accusing him of a long-running racketeering scheme. Ms. Cohen claims that Mr. Cohen engaged in insider trading while they were married and then proceeded to hide assets from her by concealing a Miami bank account that held millions, in order to avoid having to pay her a bigger settlement. Let me get this straight. According to Ms. Cohen, Mr. Cohen made his money illegally, then hid those illegal gains from her. So she's mad that she didn't get a cut of his illegal profits? And now she wants at least $100 million to compensate her for...what exactly? For her bad timing of choosing to marry him in the 80's instead of the 90's, when his annoying habits would've been far more tolerable when they came with an enormous estate with a hockey rink?

I suppose that Ms. Cohen thinks that her ex, who is reportedly worth billions now, is rich enough to fork over, say, $50 million to get her to drop the case, particularly since he has been the target of allegations of insider trading by a former employee. He doesn't need any more bad publicity. Besides, with the recession and all, $50 million can actually buy you something decent to live in in Manhattan. Maybe she's thinking "$100 million is nowhere nearly enough compensation for having to endure watching my jackass ex become a billionaire over the past couple of decades. The emotional pain, well, it's just excruciating. I've gone through eight therapists." Or maybe, she really has a case. Either way, this will get interesting.

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