SAC Capital Advisors, the hedge fund run by billionaire Steven Cohen, is understood to be close to an agreement to pay a fine of at least $1bn to settle criminal charges of insider trading – the largest ever levied for a case of this sort.
The Daily Telegraph reports that the settlement deal, which has yet to be formalised, is part of a wider campaign by America’s Securities and Exchange Commission (SEC) to flex its muscle against insider trading on Wall Street.
The final amount will hang on a number of factors which are still being negotiated, according to the Wall Street Journal, such as whether SAC will admit wrongdoing, according to reports. It is not clear whether Cohen will be allowed to continue managing money for outside investors.
The hedge fund has already agreed to pay more than $600m to settle a civil lawsuit relating to the matter, and the billionaire investor is understood to be keen to draw a line under the matter by settling the criminal cases as well.
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