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Check out the latest news and insight from the ever-evolving world of institutional investing and hedge funds from around the globe.

Jing Chen has been eVestment’s hedge fund industry news reporter since 2011. To submit industry-related press releases or request feature ideas please contact her at editor@evestment.com

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SAC Capital, US Government Closer to Reaching Insider Trading Settlement

Oct 17, 2013
Jing Chen

Embattled hedge fund firm SAC Capital Advisors is closer to reaching a deal to settle its criminal insider trading case with the U.S. government.

According to the Wall Street Journal, Steve Cohen’s Connecticut-based SAC and federal prosecutors have reached a deal for the hedge fund firm to pay about $1.2 billion to $1.4 billion--lower than the previously reported nearly $2 billion.

The penalty means that SAC would pay the U.S. government a total of nearly $2 billion, which includes a $616 million penalty the firm agreed to in a civil insider trading settlement with the Securities and Exchange Commission in March.

A grand jury charged SAC Capital in July with wire fraud and four counts of securities fraud for allegedly allowing insider trading to go unchecked from 1999 through at least 2010. The SEC also charged SAC founder Steve Cohen for failing to prevent insider trading at his firm.

Cohen has since denied the charges and maintains that he and his firm behaved appropriately.

While Cohen has agreed to stop managing external capital for a period of time, prosecutors and the SEC are currently negotiating with SAC to determine how long the hedge fund manager would be barred from the industry.

SAC had about $14 billion in total assets under management as of July 1.

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