Streams

Breaking: SAC Capital Advisors to Plead Guilty to Fraud, Pay $1.2 Billion

Monday, November 04, 2013

WNYC
Wall Street Bull (Marcio Jose Bastos Silva/Shutterstock)

Federal prosecutors in New York say hedge fund SAC Capital Advisors has agreed to plead guilty to fraud charges and pay a $1.2 billion penalty.

According to a letter dated Monday, the company will pay a $900 million fine and forfeit another $900 million to the federal government. But The Washington Post reports that total hit to the company won't be that much because the settlement allows the company to take a credit for $615 million that it is paying the Securities and Exchange Commission for a separate proceeding.

The letter also said the company will terminate its investment advisory business.

Authorities said numerous employees of SAC, which is owned by billionaire Steven Cohen, had engaged with insider trading multiple times, starting in 1999.

Tags:

More in:

Leave a Comment

Email addresses are required but never displayed.

The Morning Brief

Enter your email address and we’ll send you our top 5 stories every day, plus breaking news and weather.

Sponsored

Latest Newscast

 

 

Support

WNYC is supported by the Charles H. Revson Foundation: Because a great city needs an informed and engaged public

Feeds

Supported by