BBC News, 15
March 2013
Related
Stories
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| Former SAC trader Mathew Martoma is accused of illegally profiting from knowledge about a drug trial |
SAC
Capital, run by Steve Cohen, did not admit or deny the charges.
A unit of
the business was accused of profiting from secret information about a drug
trial from a doctor before it was made public.
The
Securities and Exchange Committee described the settlement a "sharp
warning" to any fund that would break the law.
The
settlement "does not preclude any such charges against any person,
including Steven Cohen", said George Canellos, the SEC's acting director
of enforcement.
"We
can't tolerate a market rigged for the benefit of insiders and their
cronies," he added.
SAC Capital
runs a hedge fund worth $15bn and Mr Cohen is well-known character in the
industry.
Criminal
trial
The $614m
settlement was for two different incidents at SAC Capital.
CR
Intrinsic Investors settled for $600m. The former SAC trader, Mathew Martoma,
is still facing a criminal trial and has pleaded not guilty.
He is
accused of illegally obtaining confidential details about a negative clinical
trial for an Alzheimer's drug. He then allegedly shared the information with
SAC affiliates and sold $960m worth of shares in the company that made the
drug, Elan and Wyeth.
And $14m
was for a separate incident at the Sigma Capital affiliate for insider trading
in the shares of tech firms Dell and Nvidia.
"This
settlement is a substantial step toward resolving all outstanding regulatory
matters and allows the firm to move forward with confidence,'' SAC said in a
statement.
``We are
committed to continuing to maintain a first-rate compliance effort woven into
the fabric of the firm."
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