Judge approves $900 M insider trading fine on SAC

According to a Bloomberg report, a federal judge has given his much-awaited approval to the $900 million fine the US government wished to impose on SAC Capital Advisors LP as part of a landmark settlement for insider trading charges filed against the latter. The news agency said the latest development has marked the end of the hedge fund's role as a money managing service provider and had also capped ten years of insider trading cases. The judge is reportedly still discussing the accord's terms, which amount to a total $1.8 billion, with lawyers of both parties in a Manhattan federal court.

The former SAC Capital, who now goes under the name Point72 Asset Management LP beginning this week, was indicted last year by a federal grand jury for generating hundreds of millions in dollars in illegal profits and for fostering a culture of criminality in the hedge fund, of which had influenced employees to conduct more insider trading, the news agency added.

The firm's founder, Steve Cohen, will be technically immune to lawsuits or charges. However, the 57 year-old billionaire is currently under an administrative proceeding by the US Securities and Exchange Commission for failure to uphold securities law in his company.

Former federal prosecutor Doug Burns commented about the US government's latest victory, "Both sides in this case can claim victory. Cohen can say ‘they didn't have the ability to prosecute me individually because I did nothing wrong.' And the government gets to say this was a place with a horrid culture and while the evidence didn't enable us to prosecute Steve Cohen, we got a very, very sizable monetary fine out of the culmination of all our efforts."

Bloomberg said that the plea deal, of which the $900 million payout is one part of, ends the prosecution and the money laundering lawsuit brought by Manhattan US Attorney Preet Bharara's office.

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SAC Capital Advisors LP, Point72 Asset Management LP, Manhattan US Attorney Preet Bharara, Steve Cohen

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