SAC To Pay $1.8B To Settle Fraud Charges

Prosecutors say the company made hundreds of millions of dollars illegally

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Billionaire hedge fund manager Steven Cohen’s firm SAC Capital Advisors has agreed to pay the government $1.8 billion and plead guilty to fraud charges, federal prosecutors said Monday.

In a letter to federal judges presiding over the case, prosecutors said the company will pay a $900 million fine and forfeit another $900 million to the federal government, the Associated Press reports. The company will also shut down its investment advisory business. Prosecutors said in the letter that the settlement is believed to be the largest financial penalty for insider trading in history. Criminal charges, filed in July, accuse the company of making hundreds of millions of dollars illegally.

The agreement follows a separate $615 million penalty over insider trading allegations by the Securities and Exchange Commission, according to the AP, though other reports indicate that amount is included in $1.8 billion sum.

Cohen wasn’t named as a defendant.