A Year Later, Judge Signs Off On $600M SAC Settlement

Jun 19 2014 | 10:48am ET

The former SAC Capital Advisors’ insider-trading settlements are at last final, now that Citigroup’s deal with the Securities and Exchange Commission is, too.

U.S. District Judge Victor Marrero gave his final sign-off to SAC unit CR Intrinsic Investors’ $606 million settlement with the SEC, more than a year after offering it his provisional approval. Marrero stayed a final decision pending an appeals court ruling on whether one of his colleagues had overstepped his bounds in rejecting the SEC’s $285 million because the bank was not forced to admit wrongdoing.

Marrero had expressed a similar concern about CR Instrinsic’s deal with the SEC, which covered the illegal trading by former portfolio manager Mathew Martoma and former analyst Jon Horvath. But a federal appeals court earlier this month overturned U.S. District Judge Jed Rakoff’s rejection of the Citi pact, paving the way for the final approval of the SAC pact.

The deal approved yesterday was the larger part of a $616 million settlement SAC struck with the SEC in March 2013. SAC later pleaded guilty to criminal insider-trading charges and agreed to pay $1.8 billion—with the SEC settlement credited against that total.

SAC also agreed to cease managing outside capital and is now a family office known as Point72 Asset Management. As part of a restructuring, the firm is closing CR Intrinsic.

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Editor's Note

    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…