US Govt: Hedge Fund Giant SAC Capital to Pay $1.8B
Source: abc NEWS
Hedge fund giant SAC Capital Advisors has agreed to plead guilty to fraud charges and to pay a $1.8 billion financial penalty, federal prosecutors said Monday.
The government said in a letter to judges presiding over the Manhattan case that it believed the financial penalty is the largest in history for insider trading offenses.
The company will pay a $900 million fine and forfeit another $900 million to the federal government. It also will terminate its investment advisory business.
The government called the penalties "steep but fair" and "commensurate with the breadth and duration of the charged criminal conduct."
The deal follows a separate agreement by SAC to pay a $615 million penalty to settle an insider trading claim by the Securities and Exchange Commission.
A spokesman for SAC Capital did not immediately return messages for comment.
Criminal charges including wire and securities fraud were filed in July against the Stamford, Conn.-based SAC Capital, which is owned by billionaire Steven A. Cohen. They accused the company of making hundreds of millions of dollars illegally.
Read more: http://abcnews.go.com/US/wireStory/hedge-giant-sac-capital-case-resolution-ny-20775778
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