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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...