We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedGovernance

SAC Capital in US$614mn settlement with regulators


Hedge fund settles US charges related to insider trading

Article comments

Hedge fund SAC Capital has agreed to pay a record US$614 million (£406.7 million) to the US Securities and Exchange Commission (SEC) as a settlement towards charges of insider trading.

However, the fund, managed by Wall Street heavyweight Steve Cohen, did not admit or deny the charges. The settlement was related to former trader Mathew Martoma, who stands accused of profiting from secret information about a drug trial being conducted by a pharmaceutical firm based on a tip-off he had received from a doctor, before the information was made public.

Martoma then allegedly shared the information with SAC Capital affiliates and sold US$960 million worth of shares in Elan & Wyeth, the company that made the drug. He is facing a criminal trial and has pleaded not guilty.

SAC Capital also stood accused of a separate incident at its Sigma Capital affiliate for insider trading in the shares of technology firms Dell and Nvidia. It is thought that US$600 million and US$14 million were allocated to the Martoma and Sigma Capital incidents respectively.

The SEC said, "The settlement does not preclude any such charges against any person, including Steve Cohen. We can't tolerate a market rigged for the benefit of insiders and their cronies."

SAC Capital manages a hedge fund worth US$15 billion. In a statement, it said, "This settlement is a substantial step toward resolving all outstanding regulatory matters and allows the firm to move forward with confidence. We are committed to continuing to maintain a first-rate compliance effort woven into the fabric of the firm."

Share:

Recommended Articles

Comments

SAC Capital in US$614mn settlement with regulators
Governance

What’s going to kill your company?

What’s going to kill your company?

The role of the CFO and the board in strategic risk governancemore ..


Apple loses bid for sales ban in Samsung patent case

Apple failed to show that it suffered enough harm as a result of Samsung's infringementmore ..

Steatite wins MoJ's electronic tagging contract worth £76.5m

Serco and G4S lost the contract after overcharging scandalmore ..

Ladbrokes digital strategy faces investor scrutiny

Profit drop expected as betting firm continues digital transitionmore ..

What makes a good board report?

Examining how CFOs can improve the way they report back to the boardmore ..

Examining the issue of corporate litigation funding

Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *