SAC record $1.8-bn insider plea caps 7-year probe

SAC Capital Advisors LP's landmark $1.8-billion settlement of a US government insider-trading probe stretching back to 2007 was approved by a federal judge, bringing to an end the hedge fund's role as a money manager and capping a decade of insider-trading cases.

SAC Capital, which this week changed its name to Point72 Asset Management LP, pleaded guilty to reaping hundreds of millions of dollars in illegal profits and fostering a culture of criminality that encouraged brazen insider trading by its employees.

Though never able to charge or even sue founder Steven A Cohen, the government managed to snare eight current or former employees through guilty pleas and trial convictions. Cohen, 57, who has consistently denied wrongdoing, is the subject of an administrative proceeding by the Securities and Exchange Commission, which claims the billionaire failed to supervise employees to ensure they complied with securities laws.

"Both sides in this case can claim victory," said Doug Burns, a former federal prosecutor. "Cohen can say 'they didn't have the ability to prosecute me individually because I did nothing wrong.' And the government gets to say this was a place with a horrid culture and, while the evidence didn't enable us to prosecute Steve Cohen, we got a very, very sizable monetary fine out of the culmination of all our efforts."