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Steve Cohen Is $1.4 Billion Away From Having That Family Office He Always Wanted

Hedge-fund group SAC Capital Advisors LP and federal prosecutors have agreed in principle on a penalty exceeding $1 billion in a potential criminal settlement that would be the largest ever for an insider-trading case, according to people familiar with the matter. The payment by SAC, run by star manager Steven A. Cohen, is expected to be roughly $1.2 billion to $1.4 billion, according to these people. The penalty means SAC would pay the U.S. government a total of nearly $2 billion, including a $616 million penalty the firm agreed to in a civil insider-trading settlement with the Securities and Exchange Commission in March…Prosecutors are working with the SEC in negotiations with SAC over how long the firm and Mr. Cohen would potentially refrain from managing outside capital. Mr. Cohen has agreed with prosecutors to sit out for a period of time, according to the people familiar with the matter. [WSJ]

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10 Responses to “Steve Cohen Is $1.4 Billion Away From Having That Family Office He Always Wanted”

  1. VonSloneker says:

    Handsome devil…

    – Homer Simpson

  2. Marc Rich says:

    What a shady character.

  3. Guest says:

    Racking up $1billion in legal fees wouldn't be enough to buy an innocent verdict these days?

  4. UBS MD says:

    UBS sucks.

  5. Guest says:

    Is that table 11 or a circumcised penis?

    –Guy still operating on a low resolution monitor

  6. WDSOF says:

    I must say that man claps in a very odd fashion

  7. Ellie K says:

    So. This means he pays $2 billion as a criminal settlement but the SEC and federal prosecutors "negotiate" whether or not he will "refrain from managing outside capital". No prison time, no 10,000 hours of community service, no penalty other than a pay off. In a few months, or weeks, he can just go back to insider trading, and recoup his settlement fines from the market, i.e. everyone who doesn't have insider access (or is law-abiding and doesn't trade off it).

    In the past, this only happened in corrupt, G-d forsaken third-world countries. They frown on such behavior these days.