Friday, 27 November 2015
Last updated 16 min ago
Nov 5 2013 | 8:12am ET
It did not take long for SAC Capital Advisors to violate its $1.8 billion plea agreement with federal prosecutors.
The hedge fund formally agreed yesterday morning to plead guilty to securities and wire fraud charges. As part of the deal, SAC stipulated that it "has accepted this agreement and decided to plead guilty because it is in fact guilty. By entering this plea of guilty, each of the SAC entity defendants waives any and all rights to withdraw its plea or to attack its conviction, either on direct appeal or collaterally."
Despite that agreement, SAC's own statement to the press following the inking of the deal insisted that the firm "has never encouraged, promoted or tolerated insider trading." That claim could be seen as a violation of its plea deal.
Hours later, the hedge fund issued a second statement in which the offending line was deleted. "Even one person crossing the line into illegal behavior is one too many and we greatly regret this conduct occurred," the firm said in the new statement.
SAC agreed to pay $1.8 billion—minus the $616 million it paid earlier this year—and to shut down its investment-advisory business as part of the plea agreement. The firm will also hire a compliance monitor.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…