By Jonah Toleno of Shustak Reynolds & Partners, P.C. posted on Tuesday, November 5, 2013.

Hedge fund SAC Capital Advisors has agreed to pay $1.8 billion in fines and plead guilty to securities fraud charges, according to United States prosecutors. Manhattan federal Judge Laura Taylor Swain issued an order today setting a hearing for this Friday, where SAC Capital will plead guilty to every count on the insider-trading indictment issued by the U.S. Attorney’s office in July. The indictment included allegations that SAC Capital principals, including Steven A. Cohen, ignored indications SAC Capital’s employees engaged in widespread insider trading based on illegal tips for over ten years. Some of the insider trading included high-profile stocks such as Intel, Yahoo, Blackberry, and Elan. In addition to pleading guilty to securities fraud and wire fraud charges, SAC Capital agrees to shut down its investment advisory business. Earlier this year, the SEC fined SAC Capital $616 million for civil insider-trading charges. Prosecutors hope the massive fine will send a message to other Wall Street firms that this type of misconduct will not be tolerated.

Shustak Reynolds & Partners, P.C. handles a wide range of securities and FINRA related issues and has substantial expertise and experience in the securities and brokerage business. If you believe you have been the victim of fraudulent or negligent misrepresentations in connection with the sale of securities, please contact our firm’s managing partner, Erwin Shustak, at 619.696.9500 or [email protected].

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