Accused Insider Trader From Short Hills Still On Forbes 400 List

MILLBURN, NJ — Short Hills resident and hedge fund manager Leon Cooperman took a hit when he and his firm Omega Advisors settled insider trading charges for a hefty $5 million price tag in May. But it apparently didn’t hurt too much; he still made the 2017 Forbes 400 list.

Calling Cooperman a “Wall Street legend” in their annual listing, Forbes estimated his net worth as of Oct. 17 at $3.1 billion. The 74-year-old ranked #248 on the list, which can be seen in full here.

• See related article: 6 Billionaire New Jerseyans Make Forbes 400 List

“In 2017, Cooperman settled SEC insider-trading charges by paying $4.9 million, but neither admitted nor denied the accusations,” Forbes wrote in their profile. “The battle with the SEC left Omega with just $3.6 billion in assets under management, most of which is Cooperman's own money.”

In 2016, Cooperman and his firm Omega Advisors were charged with insider trading “based on material nonpublic information he allegedly learned in confidence from a corporate executive,” the SEC stated.

The SEC alleged that Cooperman generated “substantial illicit profits” by purchasing securities in Atlas Pipeline Partners in advance of the sale of its natural gas processing facility in Elk City, Oklahoma.

• See related article: Short Hills Man, ‘6th Richest New Jerseyan’ Charged With Insider Trading

Following the SEC’s accusations, the billionaire issued a five-page letter to clients denying wrongdoing and stating that he plans to fight insider trading charges.

Bloomberg Markets stated that Cooperman spoke to the firm’s clients via a conference call and said that “we could have settled this matter with the SEC for an amount which is far less than what I donate to charity every year, but I refuse to do so because of my belief that we acted appropriately and lawfully.”

Cooperman eventually settled the insider trader charges with the SEC in May for just under $5 million. The agreement does not bar him from the securities industry.

According to Forbes:

“Cooperman, worth $3 billion according to the 2017 FORBES billionaires list, posted strong performance in 2016 despite the distraction of the SEC's sanction. His equity and credit funds rose around 10% due to savvy trades in distressed credit and collateralized loan obligations at the beginning of the year and an end-of-year rally in value stocks after President Trump was elected.”

Cooperman’s name appears on multiple Essex County institutions and foundations due to his philanthropic efforts in the region, including a $25 million grant from the Leon and Toby Cooperman Family Foundation to help finance a $250 million expansion at St. Barnabas Medical Center in Livingston.

• See related article: St. Barnabas Medical Center Breaks Ground on $250 Million Expansion
• See related article: Coopermans Pledge $250,000 to ECLC of New Jersey's Program for Adults with Special Needs

According to Election Law Enforcement Commission records, Cooperman has donated to Republican and Democrat political candidates in New Jersey including Jon Corzine, Christie Whitman, Thomas Kean, Jim Courter and Cory Booker.

Don’t forget to visit the Patch Millburn-Short Hills Facebook page here.

Send local news tips, photos and press releases to eric.kiefer@patch.com

Main Photo: Shutterstock