While we are sure many will proclamin 'this is just a witch-hunt' - and all the hangers-on will be defending Stevie's decision... the fact is that:
- *SAC AGREES TO PLEAD GUILTY TO END U.S. INSIDER-TRADING CASE
- *SAC WILL PLEAD GUILTY TO EVERY COUNT IN INDICTMENT, U.S. SAYS
- *U.S. SAYS SAC AGREEMENT PROVIDES `NO IMMUNITY' FOR INDIVIDUALS
Seems pretty cut-and-dried to us... As part of the deal, Reuters notes that SAC will terminate its investment advisory business.
The Wall Street Journal [9]has reported that the firm, run by Steven A. Cohen, is expected to agree to pay about $1.2 billion in criminal penalties, plead guilty to an indictment obtained in July by prosecutors alleging the firm encouraged rampant insider trading, and stop managing outside money. The penalty would be the largest ever for an insider-trading case.
The payment would come on top of a $616 million civil settlement that SAC reached with the Securities and Exchange Commission in March to resolve two alleged episodes of insider trading.
...
Prosecutors also filed a civil lawsuit seeking to seize SAC's assets as a product of the alleged illegal activity.
Judges in both the criminal and civil cases would have to approve SAC's settlement with prosecutors. Once the deal is approved, SAC is expected to plead guilty to securities-fraud charges—most likely at a later date—on the basis of some or all of the guilty pleas by its former employees. Companies can generally be held liable for criminal behavior by their employees.
Still there will be defenders we are sure... because after all - SAC's returns were phenomenal!!
"I think it's sad for the people who have their money managed by Steve. He's had a great performance this year. You guys know how I feel about him personally. I hope that this is the cycle of the witch hunting ending for the Department of Justice and the SEC."
"Now I hope the witch hunt is over. You're probably going to get the guy to plead guilty on something. You had ten years to try to find something to plead him personally guilty and you couldn't find it. He's stuck in the corner now and he's going to have to plead guilty for his corporation and I hope it's over with..."