SAC to shut down following $1.2B settlement with U.S. government

Settlement caps probe of one of Wall Street’s top-performing hedge funds

A decade in the making, SAC Capital Advisors LP will be forced to close its doors following a $1.2 billion insider-trading settlement with the U.S. government. The agreement follows the hedge fund giant’s earlier, $616 million civil pact with the Securities and Exchange Commission (SEC). The $1.8 billion penalty, a record for an insider-trading case, will go to the U.S. Treasury.

Under the agreement, which is subject to court approval, the SAC companies will plead guilty to each count for which they are charged in an indictment unsealed in July 2013, charging the SAC companies with securities fraud and wire fraud in connection with a large-scale insider trading scheme.

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Erin E. Harrison

Erin E. Harrison is the Editor in Chief of InsideCounsel magazine. Harrison’s professional background includes extensive expertise in both print and online media, highlighted by...

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