SEC Charges Billionaire Hedge Fund Manager Leon Cooperman With Insider Trading

One of the richest and most respected hedge fund managers in the world has been charged with insider trading.

On Wednesday, the SEC charged billionaire hedge fund manager Leon Cooperman and his Omega Advisors fund with purchasing shares of Atlas Pipeline Partners based on non-public information from the company.

According to the complaint, Cooperman referred to Atlas as a “shitty business” back in 2010. However, after a company executive told him about the company’s imminent sale of its Elk City, Oklahoma, operating facilities, Cooperman’s fund resumed buying shares of Atlas stock.

Following the public announcement of the deal, Atlas Pipeline shares surged 30 percent.

“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,” the SEC charges.

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However, the charges don’t stop there. The SEC complaint goes on to say that the 73-year-old Cooperman contacted the unnamed Atlas executive following an SEC subpoena to “attempt to fabricate a story in case.” In addition, the SEC claims that Cooperman violated securities laws by not disclosing information about his holdings in a timely manner on more than 40 occasions.

“We will vigorously defend ourselves,” Cooperman said in a brief statement.

Atlas Pipeline Partners merged with Targa Pipeline Partners LP APL in 2015.