Wednesday, September 27, 2023
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SAC Capital Pleads Guilty,|Fined $1.8 Billion

MANHATTAN (CN) - SAC Capital will plead guilty to criminal charges, pay $1.8 billion in fines and close its door to outside investors, U.S. Attorney Preet Bharara tweeted this morning.

Uncle Sam indicted the hedge fund in July, claiming Steven A. Cohen's company beat the market for years by trading on inside information.

Bharara said he would hold a news conference at 1 p.m. today in New York City to discuss the "proposed resolution" of the case against the company.

Cohen himself has not been charged, but the SEC has filed an administrative action against him accusing him of failing to supervise his hedge fund.

The $1.8 billion in fines includes $1.2 billion from the criminal investigation and $600 million that SAC has agreed to pay to settle with the SEC.

Two former SAC executives - Matthew Martoma and Michael Steinberg - are awaiting trial on inside-trading charges.

Speculation has been rife that prosecutors will try to squeeze a guilty plea from at least one of them and ask them to cooperate against Cohen.

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