Hedge Fund Group Burned Over Insider Trading
SAC Capital Advisors LP may be breaking a record very soon, though it’s likely not one the hedge fund group will be bragging about. In an agreement with federal prosecutors, SAC is likely to pay between $1.2 billion and $1.4 billion in a criminal settlement over insider trading, The Wall Street Journal reports.
Adding to a number of other penalties is a $616 million settlement with the Securities and Exchange Commission, meaning the U.S. government could be receiving up to $2 billion from the company.
Neither party wished to comment on the proceedings, according to the Journal. Steven Cohen, a manager at SAC, claims the firm has done nothing wrong, and a SAC spokesman previously stated to the publication that SAC “never encouraged, promoted or tolerated insider trading and takes its compliance and management obligations seriously.”