US govt: Hedge fund giant SAC Capital to pay $1.8B

This aerial photograph shows the Greenwich, Conn. estate belonging to billionaire hedge fund owner Stephen Cohen, Friday, July 26, 2013. Prosecutors charged Cohen's company, SAC Capital Advisors, with wire fraud and securities fraud, accusing the Stamford-based company of letting insider trading flourish over a decade and making hundreds of millions of dollars illegally. Cohen has not been charged. (Vincent T. Vuot)

November 4, 2013 6:08:07 AM PST
Federal prosecutors in New York say hedge fund giant SAC Capital Advisors has agreed to plead guilty to fraud charges and to pay a $1.8 billion financial penalty.

The agreement was contained in a letter from prosecutors to federal judges presiding over the case in Manhattan.

According to the letter dated Monday, the company will pay a $900 million fine and forfeit another $900 million to the federal government.

It said the company also will terminate its investment advisory business.