One year ago
»» Citadel was expanding. The Chicago firm—which already had offices in Boston, Hong Kong, London, New York and San Francisco—signed a deal to lease an office at 300 Crescent Court in Dallas, one of the city’s most fashionable addresses. The office would house portfolio managers backed by the firm’s seeding platforms, Surveyor Capital and PioneerPath Capital.
The firm planned to lease 6,800 square feet at that address. A receptionist for Citadel in Dallas confirmed that the office is operational, though it is not listed on Citadel’s web site alongside the firm’s other major outposts. Citadel declined to comment on the size of the office.
»» Harry Wilson, previously a partner at Silver Point Capital and the Blackstone Group, ran for New York State Comptroller, an elected position with responsibility for the state’s $130 billion pension system. The pension was tarnished by the so-called pay-to-play scandal under previous comptroller Alan Hevesi, and Wilson described the Albany offices as a “criminal enterprise.”
Wilson, who began his career at Goldman Sachs and was selected to serve on President Barack Obama’s automotive task force to restructure General Motors in 2009, believed his investing background was exactly what was needed to clean up New York’s finances. In June 2010, Wilson discussed his plans with AR.
Despite securing endorsements from New York City Mayor Michael Bloomberg, The New York Times, The New York Post and the Daily News, as well as pumping roughly $4 million of his own cash into the campaign, Wilson lost to unelected incumbent Thomas DiNapoli, who had been appointed to the role after Hevesi resigned. “I was obviously very disappointed because I had really hoped to get an opportunity to help fix New York’s many fiscal problems,” Wilson told AR. “Our internal polls a week before the race showed me with a massive lead among the minority of voters who knew who I was. Unfortunately, I was still unknown to a majority of voters on election day and they voted along party lines, translating into a very narrow loss for me. I underestimated the challenge of getting my message out for a down-ballot race in a state the size of New York.”
In March 2011, Wilson was tapped to help restructure YRC Worldwide, one of the nation’s largest freight and trucking companies.
Five years ago
»» Steve Cohen faced legal headwinds. Canadian pharmaceuticals manufacturer Biovail alleged that Cohen’s firm, SAC Capital Advisors, had engaged in an illegal and continuing stock market manipulation scheme to drive down its share price so that SAC and others might profit from shorting the stock. “Cohen personally has one of, if not the, most powerful market-moving capabilities on Wall Street,” the complaint read.
A New Jersey judge dismissed the case in August 2009. Six months later, in February 2010, SAC countersued Biovail, alleging that the firm had engaged in frivolous litigation. In the complaint, SAC claimed that it incurred “tens of millions of dollars in unnecessary legal fees” and “incalculable damage to its reputation.” Just a few months later, in November 2010, Valeant Pharmaceuticals International (which merged with Biovail in early 2010) settled with SAC, paying Cohen’s firm $10 million.
Recent developments indicate that SAC may face new legal battles. In May 2011, Congressional investigators broadened an early-stage stock-trading probe into SAC, with plans to examine any suspicious trading. Iowa Sen. Charles Grassley, the top Republican on the Senate Judiciary Committee, is investigating 20 instances during the past decade when SAC is suspected of purchasing stocks based on insider information. Authorities have not made any allegations of wrongdoing against Cohen or SAC. The firm declined to comment.
