The DealBook of The New York Times reported that hedge fund billionaire Steven Cohen would be selling USD80 million worth of high-value art starting next week. Cohen would be selling the largest lot of artwork yet. Artwork that would be sold at auction houses Sotheby's and Christie's are paintings and sculptures by Andy Warhol, Gerhard Richter, Brice Marden, Rudolf Stingel and Cy Twombly.
According to people familiar with the matter, the artwork sale came in as Cohen's SAC Capital Advisors reached an agreement with the US government regarding the hedge fund's involvement in securities fraud. In July, the US government via Manhattan State Attorney's Office filed insider charges against SAC. Six employees of Cohen's fund were found guilty on criminal charges. Cohen had been sued by federal regulators for turning a blind eye on fraudulent activities in his firm.
People who are close to the hedge fund billionaire said the artwork sale would not go towards paying legal fees and fines stemming from the securities fraud cases. SAC had settled on paying USD1.8 billion in penalties, which includes USD616 million in government fines. However, The DealBook noted that the amounts would still be coming out of Cohen's wallet as he owned 100% of SAC.
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