Leon Cooperman Could Have Been Forced Out Of The Hedge Fund Industry As Part Of An SEC Settlement

The notable and well respected fund manager is accused of buying additional shares of Atlas Pipeline Partners ahead of the company's decision to sell its operating facility to Elk City, Oklahoma. The announcement sent shares of Atlas Pipeline surging by 30 percent.

The SEC argued that Cooperman used his status as a major shareholder to gain confidential details about the sale of its asset. He was also accused of not disclosing information about his holdings in a timely manner on more than 40 occasions.

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Bloomberg reported on Thursday that the SEC pushed Cooperman to settle charges before it officially sued Cooperman. The settlement called for an $8 million fee and removing himself for a period of time from managing money for clients.

Bloomberg, citing "people familiar with the matter," added that Cooperman had no interest in settling since he denied all wrongdoing. He met with the SEC before the suit was filed to explain why he believes the allegations are "totally unwarranted."

An $8 million settlement is essentially pocket change for the billionaire, but he wants to fight to save his legacy, which spans over two decades.

It isn't clear how long the SEC's suspension would last, but Cooperman told Bloomberg Television he has no plans on retiring or returning investors' money.

Bloomberg also noted he said this week in a statement that the "damage" caused by the SEC's claims has "dramatically impacted the opportunity for professional growth for my 43 partners and associates."

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