SAC Capital Thrilled To Be Paying Largest Fine Ever For Insider Trading

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SAC Capital Advisors LP, the hedge fund run by billionaire Steven A. Cohen, will pay a record $614 million to settle U.S. regulatory claims that two of its affiliates made illegal trades using nonpublic information. CR Intrinsic Investors agreed to pay more than $600 million -- the most ever in an insider-trading case -- and Sigma Capital will forfeit about $14 million, the Securities and Exchange Commission said in a statement today. Cohen hasn’t been accused of wrongdoing. “This settlement is a substantial step toward resolving all outstanding regulatory matters and allows the firm to move forward with confidence,” Jonathan Gasthalter, a spokesman for SAC Capital, said in an e-mailed statement. “We are committed to continuing to maintain a first-rate compliance effort woven into the fabric of the firm.” [Bloomberg]

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Things Could Be Worse But They Could Also Be Better At SAC Capital Right Now

The good news, if you are Mr. Steve Cohen: you were neither charged nor "mentioned by name" in the criminal complaint against your former employee, Mathew Martoma. The less good news: YOU ARE PORTFOLIO MANAGER A. YOU NEVER WANT TO BE PORTFOLIO MANAGER A!