Conn.-based SAC Capital pleads guilty to fraud charges to satisfy $1.8B deal with government

Published November 08, 2013

| Associated Press

As promised, SAC Capital Advisors has pleaded guilty to criminal fraud charges in a record $1.8 billion deal with the government.

The company's longtime general counsel Peter Nussbaum entered the plea to wire fraud and securities fraud Friday in Manhattan. But a federal judge didn't immediately accept the plea, saying she'd wait until a probation report is made.

The plea comes four days after the federal government announced it had reached a deal requiring the largest penalty ever for insider trading.

The deal requires the Stamford, Conn.-based hedge fund to close its business to outside investors.

It also allows prosecutors to continue its criminal investigation. It spares no individuals from scrutiny, including its founder, Steven A. Cohen.

Cohen was accused by federal regulators over the summer in a civil action of failing to prevent insider trading at the company. He has disputed the allegations.

URL

http://www.foxnews.com/us/2013/11/08/conn-based-sac-capital-pleads-guilty-to-fraud-charges-to-satisfy-18b-deal-with/