The Wall Street Journal reports that "Hedge-fund group SAC Capital Advisors LP and federal prosecutors have agreed in principle on a penalty exceeding $1 billion in a potential criminal settlement that would be the largest ever for an insider-trading case", according to people familiar with the matter.
The payment by SAC, run by star manager Steven Cohen, is expected to be roughly $1.2 billion to $1.4 billion, according to these people.
The payment by SAC, run by star manager Steven Cohen, is expected to be roughly $1.2 billion to $1.4 billion, according to these people.
The penalty means SAC would pay the U.S. government a total of nearly $2 billion, including a $616 million penalty the firm agreed to in a civil insider-trading settlement with the Securities and Exchange Commission in March.
The firm didn't admit or deny wrongdoing in the civil settlement, which is awaiting approval by a federal judge.
The penalty SAC agreed to pay in the SEC matter is the largest to date in an insider-trading case.
SAC has denied the criminal charges. The firm says Mr. Cohen, who hasn't been accused of criminal wrongdoing, has done nothing wrong. Any settlement wouldn't affect a continuing criminal investigation into Mr. Cohen's trading activities, the people said.
Spokespeople for the Manhattan U.S. attorney's office, the Federal Bureau of Investigation, the SEC and SAC declined to comment.
