New York (HedgeCo.Net) – Hedge fund millionaire Anthony Scaramucci spoke to CNBC yesterday regarding the looming SAC Capital settlement with the SEC, saying “The Department of Justice and the SEC are gone crazy in these matters.”
“I think it’s sad for the people who have their money managed by (Steven Cohen). He’s had great performance this year.” Scaramucci said. “You guys know how I feel about him personally. I hope that this is the cycle of the witch hunting ending for the Department of Justice and the SEC. Look at JPMorgan. Not just SAC/Cohen. They’re after everybody. I think it’s unfair. I’m one of the few people who’s bold enough to speak out about it.”
Although the deal has not been finalized, the WSJ says that prosecutors are seeking a $1.8 billion penalty. The SEC is also seeking a lifetime ban for SAC Capital’s manager from the securities industry.
“They’ve got to scapegoat a few people, OK. And what they hope to do is hold those people up as an example to scare the rest of the people. And Marc Cuban, in Marc Cuban’s case, they had to drop the case.”
“Look, they’re upset. I know you guys didn’t get the Madoff thing right. You went in there and investigated him several times and blew it. So now you’re on a witch hunt for everybody. Why don’t we just stop it at this point.”
“Like any profession, doctors, etc., there are bad actors everywhere but what we do in the media is we focus on two or three things and make it look like the whole industry is tainted when we really know that’s not the case. Moreover, when someone is answering a survey like that, I think they have an inclination to create fires. So that’s my opinion and I’m going to hold to it,” he said.
“There’s two-and-a-half trillion dollars in the hedge fund industry for a reason. People have done an amazing job in the hedge fund industry for clients and let me give a news flash for the SEC—Many blue collar workers are inside hedge funds, including SkyBridge, where we do a phenomenal job taking care of them, guiding them toward actuary numbers for their retirement.”
“Now I hope the witch hunt is over. You’re probably going to get the guy to plead guilty on something. You had ten years to try to find something to plead him personally guilty and you couldn’t find it. He’s stuck in the corner now and he’s going to have to plead guilty for his corporation and I hope it’s over with.”
Since the investigation started, nine current and former SAC employees have been linked to insider trading while working at SAC Capital, four of whom pleaded guilty. Cohen himself has taken the 5th, declining to testify before a grand jury.
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