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Friday, Oct 18
SAC, government near settlement of over $1B
- SAC Capital is reportedly nearing a deal with U.S. prosecutors to settle charges of insider trading in which the hedge fund could pay $1.2-1.4B in penalties and forfeiture of profits, and plead guilty to criminal misconduct.
- SAC could also be banned from managing money for outside investors for a period of time.
- The amount involved would be the biggest monetary penalty ever for insider trading.
- The deal could have been $2B, but the government has agreed to deduct the $616M that SAC agreed to pay the SEC to settle a civil lawsuit.