SAC Capital – Steve Cohen’s Stamford-based hedge fund – may be close to settling insider trading charges with the Securities and Exchange Commission for more than $1 billion, according to multiple news sources.
Cohen, who has not been formally charged with any wrongdoing, will remain under investigation, reports say.
Negotiations between SAC and authorities remain ongoing, the Wall Street Journal reported. A fine between $1.2 billion and $1.4 billion is reportedly under consideration. Cohen himself could pay the fine, as was the case with a $616 million settlement on civil charges with the federal Securities and Exchange Commission. Forbes places his personal net worth at $9.4 billion.
Some reports had SAC losing its ability to do business with outside money, but that detail remained speculative at press time. The firm’s wellspring of outside money has reportedly dwindled substantially with the federal investigation.
SAC has denied the criminal charges of insider trading. It neither acknowledged nor denied charges in the civil settlement.
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