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by Bill Singer

SAC Gets Sacked By Feds. READ Full-Text Indictment, Complaint, And Plea

November 5, 2013

On November 4, 2013, the United States Attorney for the Southern District of New York Preet Bharara announced an agreement (the "Agreement") to resolve insider trading charges against four companies collectively (the "SAC Companies"), that are responsible for the management of a group of affiliated hedge funds:

  1. S.A.C. CAPITAL ADVISORS, L.P.  
  2. S.A.C. CAPITAL ADVISORS, LLC, 
  3. CR INTRINSIC INVESTORS, LLC , and 
  4. SIGMA CAPITAL MANAGEMENT, LLC

Subject to Court approval, the Agreement contemplates the SAC Companies pleading guilty to each count in the Indictment charging the SAC Companies with securities fraud and wire fraud in connection with an alleged large-scale insider trading scheme. The Agreement imposes the largest insider trading penalty to date of $1.8 billion, which comprises a $900 million fine in the criminal case, and a $900 million forfeiture judgment in a civil money laundering and forfeiture action filed by the Government simultaneously with the criminal charges. It also provides that the SAC Companies and their affiliates will no longer accept outside investor funds and will shut down operations as an investment adviser.


The Indictment alleges that from 1999 through at least 2010, numerous employees of the SAC Companies obtained and traded on material, non-public information that they were not permitted to have, or recommended trades based on such information to SAC Portfolio Managers or the SAC Owner. The Agreement has two component parts: 

  1. a plea agreement to resolve the Criminal Case, and 
  2. a stipulation and proposed order to resolve the civil money laundering and forfeiture claims in the Forfeiture Action. 

The BrokeAndBroker Blog offers its readers the full-text of the Indictment, Civil Complaint, and Plea Agreement:

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