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.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR