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

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.