The US brought criminal charges against the revered Wall Street hedge fund SAC Capital Advisors and related companies on counts that cover which the US Attorney Preet Bharara called the enabling and promoting insider trading practices. However, the criminal charges filed on July 25, 2013 didn't name the founder of the hedge fund, Steven Cohen. The criminal charges were filed almost a week after the Securities and Exchange Commission filed a civil case aimed at barring Cohen from managing investor funds for his failure to prevent insider trading by his employees.
On November 4, 2013, SAC Capital agreed to the largest ever insider trading settlement with US Attorney Bharara, and would pay a fine of $1.2 billion. SAC Capital also pleaded guilty to each of the five counts in the indictment, which notes that eight former employees were charged with securities fraud. Six of them had pleaded guilty, and two of them will be put in trials in the coming months. The trial of two former traders--Michael Steinberg and Mathew Martoma--will put the spotlight squarely on Steven Cohen, billionaire founder of the hedge fund. SAC Capital previously agreed to pay an additional $616 million in fine to Securities and Exchange Commission. As part of the November 4, 2013, settlement terms, SAC is barred to manage money of any outside investors. It is free to manage personal wealth of Cohen, who was not charged on any wrongdoing.
Largest Criminal Fine for Insider Trading Against SAC Capital
A federal judge, US District Judge Laura Taylor Swain, on April 10, 2014 sentenced SAC Capital with $1.8 billion in fine, largest criminal fine in insider trading, on charges of wire fraud and security fraud committed by the trader and three related entities. All admitted to the charges last fall (2013 fall).
On November 4, 2013, SAC Capital agreed to the largest ever insider trading settlement with US Attorney Bharara, and would pay a fine of $1.2 billion. SAC Capital also pleaded guilty to each of the five counts in the indictment, which notes that eight former employees were charged with securities fraud. Six of them had pleaded guilty, and two of them will be put in trials in the coming months. The trial of two former traders--Michael Steinberg and Mathew Martoma--will put the spotlight squarely on Steven Cohen, billionaire founder of the hedge fund. SAC Capital previously agreed to pay an additional $616 million in fine to Securities and Exchange Commission. As part of the November 4, 2013, settlement terms, SAC is barred to manage money of any outside investors. It is free to manage personal wealth of Cohen, who was not charged on any wrongdoing.
Largest Criminal Fine for Insider Trading Against SAC Capital
A federal judge, US District Judge Laura Taylor Swain, on April 10, 2014 sentenced SAC Capital with $1.8 billion in fine, largest criminal fine in insider trading, on charges of wire fraud and security fraud committed by the trader and three related entities. All admitted to the charges last fall (2013 fall).
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