Elizabeth Warren calls SEC's approval of Cohen's firm 'a mockery'. Corrupt hedge-funder, charter supporter.

Hedge-funder Steve Cohen

“The commission has permitted a recidivist hedge fund manager, well-known for his former company’s willingness to evade and ignore federal law, to once again profit from – and potentially exploit – investors.” -- Sen. Elizabeth Warren

Whenever I read about some crooked hedge-fund billionaire mired in scandal, I always check to see if and how they're involved with charter schools. I rarely come up empty. 

Billionaire hedge-funder Steve Cohen is one of the major underwriters of privately-run charter schools. The couple's Steven and Alexandra Cohen Foundation is a top donor to the Connecticut Coalition for Achievement Now (ConnCAN), Achievement First, Families for Excellent Schools Cohen, whose SAC Capital paid $1.2 billion in a security fraud case last year. 

The Guardian reports:

On Thursday, [Sen. Elizabeth Warren] sent a missive to Mary Jo White, SEC chair, telling her she was making “a mockery” of the regulator’s core mission.

Warren, a scourge of Wall Street, is disappointed with the agency’s decision to approve Stamford Harbor Capital to act as investment adviser to outside clients. The reason? The firm is associated with Steven Cohen, former manager of SAC Capital Advisors, who pleaded guilty to insider trading in 2013 and paid a record $1.8bn fine.

Turns out, Cohen indirectly owns Stamford Harbor Capital. He is to receive as much as 50% of client profits, but won’t have any supervisory role, according to Bloomberg.
“Steve Cohen owns the entity, but consistent with his January agreement with the SEC he will not supervise the activities of anyone working on its behalf,” Jonathan Gasthalter, a Stamford Harbor spokesman, told Bloomberg.

 “The commission has permitted a recidivist hedge fund manager, well-known for his former company’s willingness to evade and ignore federal law, to once again profit from – and potentially exploit – investors,” Warren wrote in her letter on Thursday. “This is an unacceptable outcome from the nation’s primary enforcer of securities laws, and it is the latest example of an SEC action that fails to appropriately punish guilty parties, deter future wrongdoings and protect investors.”

Why is the White House covering for Cohen? While he has been a big contributor to conservative super PACs like Chris Christie's America Leads, he's also a big backer of Dem. candidates, including Connecticut Gov. Malloy.

The Hartford Courant's Jenny Wilson reports:

Wall Street billionaires who have invested heavily in the expansion of charter schools contributed more than $200,000 to Democrats in the 2013-14 election cycle, helping Gov. Dannel P. Malloy secure re-election.

The campaign contributors earned their fortunes as hedge fund managers and private equity investors before earning reputations as "education philanthropists." They have helped bankroll charter school movements throughout the country, spending to influence elections and to support advocacy movements.

Major U.S. hedge fund managers are on pace this year to more than double the amount they gave in the 2012 election campaign, with independent fundraising groups backing Democratic presidential front-runner Hillary Clinton and Republican rival Ted Cruz receiving the most so far.

Bernie Sanders has eschewed donations from Wall Street. He has racked up a string of wins in early state nominating contests with attacks on Wall Street and calls for a more equitable distribution of the country's wealth.