NEW YORK – A New York prosecutor says an agreement with a hedge fund giant requiring it to pay a record $1.8 billion to resolve criminal insider trading charges proves that no institution is "too big to jail."
U.S. Attorney Preet Bharara (buh-RAH'-ruh) in Manhattan made the remark Monday as he announced that SAC Capital Advisors and related companies will pay the record penalty and plead guilty to criminal fraud charges. They'll get to exclude $616 million from the penalty, an amount they owe the Securities and Exchange Commission for civil charges.
The deal needs approval from federal judges. That seems likely considering the size of the deal. The government says SAC Capital must wind down and close its outside investment business. SAC Capital said in a statement it has never tolerated insider trading.