According to the terms of a settlement agreement announced today, SAC Capital will pay $1.8 billion to resolve the criminal indictment brought against the firm for insider trading—the largest fine for insider trading in U.S. history. The future of Steven Cohen, the firm’s founder and one of the 150 richest men in the world, has not been so clearly resolved.
Preet Bharara, the U.S. Attorney for the Southern District of New York, announced that, under the proposed settlement, SAC will pay $900 million in forfeiture and a $900 million fine. The firm will receive credit for a $616 million penalty it agreed to pay the Securities and Exchange Commission in March over related insider trading charges, which brings the net total today to just under $1.2 billion. Cohen, as the owner of the firm, will pay for all of it out of his own pocket.