On April 10, Judge Laura T. Swain of the Southern District of New York accepted the guilty pleas of the SAC Capital Management Companies (“SAC”) and imposed a sentence as contemplated by SAC’s plea agreement. Judge Swain ordered SAC to pay a $900 million criminal fine, imposed the maximum five-year term of probation, and effectively closed the hedge fund to outside investors by ordering it to terminate its investment advisory business. The sentence also required defendants and any successor entities to implement compliance procedures targeted at identifying and preventing insider trading and to retain a compliance monitor to oversee those efforts. SAC will pay $1.8 billion in total penalties, including the $900 million fine, a net $284 million civil forfeiture, and a $616 million payment to the SEC.
The SAC Companies pled guilty to four counts of securities fraud and one count of wire fraud in connection with a pattern of substantial and pervasive insider trading at the company involving the securities of more than 20 publicly traded companies and lasting more than a decade. The SAC Companies also admitted that six employees who previously pled guilty to insider trading engaged in that conduct while acting within the scope of their employment and for the firm’s benefit. United States v. SAC Capital Advisors, LP, et al., 13 CR 541 (S.D.N.Y.) DOJ Press Release