Business & Tech

Historic $1.8 Billion Penalty Finalized Against Cohen's SAC Capital Advisors

The penalty includes a $900 million fine and a $900 million forfeiture of assets.


In what federal prosecutors described as a fine and forfeiture of historic proportions — $1.8 billion — were formally imposed against Greenwich billionaire Steven Cohen's SAC Capital hedge fund.

In Manhattan U.S. District Court, Judge Laura Taylor Swain formally imposed the fine on Cohen's Stamford-based SAC Capital LP and three related businesses, according to a CBS New York report. The sentence was based upon an agreement reached last fall by lawyers for Cohen's companies and federal prosecutors who had charged wire and securities fraud were part of a long-term insider trading scheme.

While Cohen has never been charged, the case led to the indictment and conviction of eight former employees of the funds that managed mostly Cohen's investments.

Of the $1.8 billion financial sanction — $900 million was a fine and the other $900 million was forfeiture of assets, more than double the $400 million that prosecutors said was gained through insider trading.

The fine and forfeiture is the latest in the legal saga the government has lodged against the firms owned by Cohen who is estimated to be worth about $15 billion and lives on a sprawling backcountry Greenwich estate. In July 2013, SAC Capital settled a suit brought by the Securities and Exchange Commission, paying a $615 million fine for trading violations.


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here