Bailey McCann, Opalesque New York:
Troubled hedge fund SAC Capital Advisors will plead guilty to an insider trading probe launched by the Securities and Exchange Commission (SEC).
The guilty plea is part of a broader settlement over the insider trading charges, as part of that settlement the fund will pay $1.8bn, the largest fine to date for an insider trading case. News of the settlement came today, November 4th, from federal prosecutors.
As part of the settlement the fund is also banned from managing outside money for a five year period, although a family office will likely be set up to continue managing Mr. Cohen's personal wealth. Mr. Cohen himself is facing the possibility of a personal ban from managing outside money as part of a separate civil case.
Preet Bharara, the United States attorney in Manhattan said in a press conference on Monday that the settlement should show that the regulator is not afraid to go after the biggest firms.
The settlement is also a notable capstone to some 70 insider trading cases that have seen settlements and/or convictions over the past couple of years. The SEC and federal prosecutors have indicated that they plan to continue leaning hard on financial services, looking closely for instances of fraud.
The New York Times first reported this morning on a variety of items still outstanding in......................
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