SAC Plea Hearing Set For Friday

Nov 6 2013 | 2:11pm ET

SAC Capital Advisors will plead guilty to insider-trading charges on Friday, pending the approval of a federal judge.

U.S. District Judge Laura Taylor Swain will hold a hearing on the $1.8 billion settlement agreement on Friday afternoon. If she rejects the pact, SAC will be permitted to withdraw its guilty plea on securities and wire fraud charges.

This morning, the plea deal cleared its first hurdle, when U.S. District Judge Richard Sullivan signed off on the $900 million civil forfeiture portion of the deal. After signaling yesterday he might strictly scrutinize the agreement, Sullivan punted to Swain, saying that his opinion "is not really relevant today" and that he expected Swain to perform "a more searching inquiry."

Under the terms of Monday's plea agreement with prosecutors, SAC will be barred from managing outside capital and will have to hire a compliance monitor. The $1.8 billion forfeiture and fine will be reduced by the $616 million the hedge fund agreed to pay earlier this year, and SAC will be permitted to walk away from the deal if Swain doesn't accept it as is.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note