SAC Civil Money-Laundering Settlement Approved by Judge

Steven A. Cohen’s SAC Capital Advisors LP won partial approval of its $1.8 billion settlement with the U.S., as a federal judge said he’ll sign off on an agreement to resolve a civil money-laundering case against the hedge fund.

U.S. District Judge Richard Sullivan said today he’ll sign an order approving the agreement, after quoting an appeals court’s instruction that a court’s authority to review such civil settlements with the government is “minimal, at best.”

Sullivan approved the agreement in a 15-minute hearing in Manhattan federal court. On Nov. 8, U.S. District Judge Laura Taylor Swain will consider whether to approve SAC’s guilty plea to securities-fraud and wire-fraud charges.

SAC, which was indicted earlier this year, was accused of reaping hundreds of millions of dollars in illegal profit through insider trades by employees dating to 1999. Cohen, 57, wasn’t charged. He still faces an administrative action filed by the U.S. Securities and Exchange Commission alleging he failed to supervise his hedge fund’s activities.

The criminal case is U.S. v. SAC Capital Advisors LP, 13-CR-00541, U.S. District Court, Southern District of New York (Manhattan). The civil case is U.S. v. SAC Capital Advisors LP, 1:13-cv-5182, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Bob Van Voris in Manhattan federal court at rvanvoris@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at  mhytha@bloomberg.net

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