Saturday, 23 August 2014
Last updated 19 hours 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.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note