Guilty Plea Agreement With SAC Capital Management Companies Announced
NEW YORK, NY -- U.S. Attorney Preet Bharara and FBI Special Agent-in-Charge April Brooks announce an agreement to resolve insider trading charges against four companies -- S.A.C. Capital Advisors, L.P., S.A.C. Capital Advisors, LLC, CR Intrinsic Investors, LLC, and Sigma Capital Management, LLC, collectively (the "SAC Companies") -- that are responsible for the management of a group of affiliated hedge funds. Under the agreement, which is subject to Court approval, the SAC Companies will plead guilty to each count in which they are charged of an indictment unsealed in July of this year charging the SAC Companies with securities fraud and wire fraud in connection with a large-scale insider trading scheme. The agreement imposes a $1.8 billion financial penalty on the SAC Companies -- the largest insider trading penalty in history -- split between a $900 million fine in the criminal case and a $900 million forfeiture judgment in a civil money laundering and forfeiture action filed by the Government simultaneously with the criminal charges. It also provides that the SAC Companies and their affiliates will no longer accept outside investor funds and will shut down operations as an investment adviser.