Deal reached in SAC Capital insider trading case - FOX13 News, WHBQ FOX 13

Deal reached in SAC Capital insider trading case

Posted: Updated:

By LARRY NEUMEISTER and MARCY GORDON  Associated Press

NEW YORK (AP) -- Hedge fund giant SAC Capital Advisors has agreed to plead guilty to fraud charges and to pay a $1.8 billion financial penalty, federal prosecutors said Monday.

The government said in a letter to judges presiding over the Manhattan case that it believed the financial penalty is the largest in history for insider trading offenses.

The company will pay a $900 million fine and forfeit another $900 million to the federal government. It also will terminate its investment advisory business.

The government called the penalties "steep but fair" and "commensurate with the breadth and duration of the charged criminal conduct."

The deal follows a separate agreement by SAC to pay a $615 million penalty to settle an insider trading claim by the Securities and Exchange Commission.

A spokesman for SAC Capital did not immediately return messages for comment.

Criminal charges including wire and securities fraud were filed in July against the Stamford, Conn.-based SAC Capital, which is owned by billionaire Steven A. Cohen. They accused the company of making hundreds of millions of dollars illegally.

A prosecutor said at the time that evidence against the company was "voluminous" and included electronic messages, instant messages, court-ordered wiretaps and consensual recordings. Prosecutors said a work culture at SAC permitted, if not encouraged, insider trading.

Authorities alleged that SAC Capital earned hundreds of millions of dollars illegally from 1999 to 2010 as its portfolio managers and analysts traded on inside information from at least 20 public companies. Bharara in July said SAC Capital "trafficked in inside information on a scale without any known precedent in the history of hedge funds."

Of the roughly $15 billion in assets that SAC managed as of earlier this year, about half belonged to Cohen and his employees. The rest was client money.

Cohen wasn't named as a defendant in the case. He was repeatedly referenced in court papers at the "SAC owner" who "enabled and promoted" insider trading practices.

------

Gordon reported from Washington.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Your MoneyMore>>

  • Envelopes in Marriott hotels invite tips for maids

    Envelopes in Marriott hotels invite tips for maids

    Monday, September 15 2014 8:14 AM EDT2014-09-15 12:14:33 GMT
    Do you leave a tip in your hotel room for the maid?  Marriott is placing envelopes in 160,000 hotel rooms beginning this week to encourage guests to leave tips.
    Do you leave a tip in your hotel room for the maid?  Marriott is placing envelopes in 160,000 hotel rooms beginning this week to encourage guests to leave tips.
  • Housing activists protest Airbnb

    Housing activists protest Airbnb

    Friday, September 12 2014 7:41 PM EDT2014-09-12 23:41:17 GMT
    You've probably seen Airbnb commercials extolling the benefits of homeowners renting out their houses or apartments to out-of-town guests for a fee. Sharing is caring feel-good commercials.But housing activists say Airbnb is reducing available housing in New York City's increasingly expensive and shrinking housing market. They argue Airbnb is pushing thousands of apartments toward use as illegal hotels instead of affordable housing.
    You've probably seen Airbnb commercials extolling the benefits of homeowners renting out their houses or apartments to out-of-town guests for a fee. Sharing is caring feel-good commercials.But housing activists say Airbnb is reducing available housing in New York City's increasingly expensive and shrinking housing market. They argue Airbnb is pushing thousands of apartments toward use as illegal hotels instead of affordable housing.
  • Robot workers are coming

    Robot workers are coming

    Friday, September 12 2014 7:13 PM EDT2014-09-12 23:13:15 GMT
    A life-sized looking and sounding robot named the RoboThespian is an interactive, alert machine powered by algorithms and codes -- a form of artificial intelligence. It's the sort of thing that would have sounded like science fiction a generation ago. These days, robots like this are used mostly in showrooms and for entertainment. But researcher Cadell Last of the Global Brain Institute says that these bots will have a much bigger role and will make up a major part of the workforce.
    A life-sized looking and sounding robot named the RoboThespian is an interactive, alert machine powered by algorithms and codes -- a form of artificial intelligence. It's the sort of thing that would have sounded like science fiction a generation ago. These days, robots like this are used mostly in showrooms and for entertainment. But researcher Cadell Last of the Global Brain Institute says that these bots will have a much bigger role and will make up a major part of the workforce.
Powered by WorldNow

WHBQ-TV | Fox 13
485 S. Highland St.
Memphis, TN 38111

Main Station: (901) 320-1313
Newsroom: (901) 320-1340

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices