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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 Pleas Guilty to Insider Trading

Nov 04, 2013
Jing Chen

Steve Cohen’s SAC Capital Advisors has finally entered a plea to its insider trading charges.

The New York Times reported that Connecticut-based SAC pleaded guilty Monday, and will pay a $1.2 billion fine -- one of the largest insider trading settlements by a large Wall Street firm. 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.

As part of the settlement agreement, SAC was also banned from managing outside capital for five years, although the firm will likely continue to manage Cohen’s assets.

The U.S. government scheduled a press conference for Monday afternoon to discuss the deal.

A grand jury charged SAC 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 Cohen in a civil lawsuit for failing to prevent insider trading at his firm.

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

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