Patricia Cohen, the ex-wife of the hedge fund billionaire Steven A. Cohen, has a new lawyer representing her in the civil racketeering lawsuit she filed against Mr. Cohen.
Gaytri Kachroo has taken over the case from Paul Batista, a New York lawyer. In various federal inquiries and hearings, Ms. Kachroo represented Harry Markopolos, the whistle-blower who spent a decade trying to warn authorities, including the Securities and Exchange Commission, that Bernard L. Madoff was running an extensive Ponzi scheme.
Ms. Cohen approached Ms. Kachroo soon after her case was filed in mid-December in United States District Court for the Southern District of New York. “She felt her case wasn’t getting the attention it required,” said Ms. Kachroo, who is not a litigator but is a corporate lawyer with her own practice.
After reviewing the documents and learning of new facts that were not included in the original lawsuit, Ms. Kachroo said she decided to accept the case. “I think we have a very strong case, especially in light of the facts that we’ve uncovered,” she said. She declined to elaborate on those facts, but said they would be included in a new or amended complaint.
Mr. Batista, Ms. Cohen’s previous lawyer, said: “I wish her well. I’m surprised as I felt I gave her all the attention her case deserved.”
As in other divorces involving prominent business figures, the case threatens to turn a spotlight on private business dealings.
Ms. Cohen asserts that Mr. Cohen hid millions of dollars in marital assets when the two divorced more than 20 years ago. She says he lied under oath about his net worth, conducted mail and wire fraud, and concealed from her and the Supreme Court of New York millions of dollars he held in 1990, thus reducing her divorce settlement.
She also accused him of conceding to her in 1985, while they were married, that he had received inside information about the takeover of RCA by General Electric. Mr. Cohen runs SAC Capital Advisors, a hedge fund that manages $13 billion.
Ms. Cohen’s lawsuit, which seeks $300 million, was filed under a civil version of the Racketeer Influenced and Corrupt Organizations Act, or RICO, that is often used against organized crime and almost never used in divorce cases. It allows plaintiffs to seek triple damages.
Jonathan Gasthalter, a spokesman for Mr. Cohen, said: “Changing counsel does not change the fact that this is a completely irresponsible filing, entirely without merit.”
Lawyers say RICO cases have to meet unusually high statutory standards and such cases face a four-year statute of limitations. Ms. Kachroo said that she believed Ms. Cohen had plenty of time within the statute of limitations based on when she discovered the facts that underlie the case. “We have longer than people think we do,” she said.
Ms. Kachroo has 120 days from the time the case was filed to submit a new complaint or amend the current one; she can change venues as well. She will determine her next move soon.
Mr. Cohen is estimated to be worth $6 billion.
Billionaire’s Ex-Wife Hires New Lawyer in Civil Suit
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