Federal prosecutors in New York say hedge fund giant SAC Capital Advisors has agreed to plead guilty to fraud charges and to pay a $1.8 billion financial penalty.
The agreement was contained in a letter from prosecutors to federal judges presiding over the case in Manhattan. According to the letter dated today, the company will pay a $900 million fine and forfeit another $900 million to the federal government.
Prosecutors in the case claimed that SAC created a work environment that enabled insider trading by its employees in companies including Intel, Elan, Yahoo and Blackberry. Feds say top SAC leaders ignored the signs that their own employees were suggesting trades based on illegal tips.
Photo: Preet Bharara, United States Attorney for the Southern District of New York speaks at a news conference July 25, 2013 about a federal indictment against SAC Capital, the hedge fund run by billionaire Steven A. Cohen.