SAC To Sign Plea Deal Today

Nov 4 2013 | 9:20am ET

SAC Capital Advisors is set to finalize its plea agreement with federal prosecutors today—a deal that will see the hedge fund giant plead guilty to securities fraud charges and be temporarily barred from managing outside capital.

Representatives of the hedge fund and the U.S. Attorney's office in Manhattan will sign the settlement documents today. Details of the agreement—which will include at least one securities fraud count, but no admission of promoting insider trading—will be announced shortly afterwards, CNBC reports.

SAC is expected to pay a $1.8 billion—with the $616 million it paid earlier this year to settle other insider-trading charges counted against the total. It will also agree to forego managing outside capital for a period of time, although it will be allowed to return its remaining client money in an orderly fashion. Investors have already moved to redeem substantially all of SAC's outside capital, and SAC will de-register with the Securities and Exchange Commission.

SAC will still have about $9 billion, all of it belonging to founder Steven Cohen.

Prosecutors will file an amended complaint against SAC as part of the settlement.

The deal does not cover the SEC's civil fraud lawsuit against Cohen, which accuses him of failing to supervise his employees.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of