Precy Dumlao, Opalesque Asia:
Government prosecutors and the camp of Steven A. Cohen's SAC Capital Advisors have reached an agreement over the weekend to allow the beleaguered hedge fund to continue its operations while the criminal case against it is ongoing.
A report by Fox Business said that deal does not come as a surprise since government prosecutors filed criminal charges and a civil asset forfeiture against the $14bn hedge fund last month. However, the deal still needs approval from the Manhattan presiding judge particularly over the asset forfeiture case.
Federal authorities indicted SAC Capital on July 25 and labeled the hedge fund firm "a veritable magnet of market cheaters," in a rare move against a large company that could threaten its survival. The authorities argued that the firm and its units permitted a "systematic" insider trading scheme to unfold from 1999 to 2010, activity that generated hundreds of millions of dollars in profit for the firm, owned by its founder, the billionaire stock picker Cohen.
On the same day of its indictment, SAC Capital was also slapped with a parallel civil forfeiture case as prosecutors seek penalties for alleged money laundering and accused the firm of earning illegal profits ......................
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