Leon Cooperman of Omega Advisors faces insider trading charges. They allege he generated substantial illicit profits.
He's charged with failing to timely report information.
could be the biggest insider tradingcase ever. Cooperman's net worth is
estimated at $3.2 billion. He's the former CEO of Goldman Sachs Asset
FOR IMMEDIATE RELEASE 2016-189 Washington D.C., Sept. 21, 2016 -
The Securities and Exchange Commission today charged hedge fund manager
Leon G. Cooperman and his firm Omega Advisors with insider trading
based on material nonpublic information he learned in confidence from a
The SEC alleges that Cooperman generated
substantial illicit profits by purchasing securities in Atlas Pipeline
Partners (APL) in advance of the sale of its natural gas processing
facility in Elk City, Oklahoma. Cooperman allegedly used his status as
one of APL's largest shareholders to gain access to the executive and
obtain confidential details about the sale of this substantial company
asset. Cooperman and Omega Advisors allegedly accumulated APL
securities despite explicitly agreeing not to use the material nonpublic
information for trading purposes, and when APL publicly announced the
asset sale its stock price jumped more than 31 percent.
to the SEC's complaint, when Omega Advisors received a subpoena nearly a
year-and-half later about its trading in APL securities, Cooperman
contacted the executive and tried to fabricate a story to tell if
questioned about this trading activity. The executive was shocked and
angered when he learned that Cooperman traded in advance of the public
"We allege that hedge fund manager Cooperman, who
as a large APL shareholder obtained access to confidential corporate
information, abused that access by trading on this information," said
Andrew J. Ceresney, Director of the SEC's Division of Enforcement. "By
doing so, he allegedly undermined the public confidence in the
securities markets and took advantage of other investors who did not
have this information.
"The SEC's complaint further charges
Cooperman with failing to timely report information about holdings and
transactions in securities of publicly-traded companies that he
beneficially owned, alleging that he violated federal securities laws
more than 40 times in this regard.
The SEC's complaint was filed
in federal district court in Philadelphia and seeks disgorgement of
ill-gotten gains plus interest, penalties, and permanent injunctions
against Cooperman and Omega Advisors as well as an officer-and-director
bar against Cooperman.