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

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...