Hedge Fund SAC Capital Advisers has agreed to pay a record $1.8 billion to resolve insider trading investigations by the Department of Justice and Founder Cohen Steven A. Cohen will go uncharged uncharged. The U.S. Department of Justice said that payout is the largest insider trading settlement in history.
An indictment in July alleged systemic insider trading took place at SAC Capital involving the stocks of more than 20 publicly-traded companies from 1999 through 2010. Eight employees have pleaded guilty or been convicted at trial. SAC Capital agreed in November to plead guilty to four counts of securities fraud and one count of wire fraud.
The Stamford, Connecticut-based firm renamed itself Point72 Asset Management and is becoming a family office that will primarily manage Cohen’s personal fortune, recently estimated by Forbes magazine at $11.1 billion.
The case is U.S. v. SAC Capital Advisors LP, U.S. District Court, Southern District of New York, No. 13-cr-00541.