(NEW YORK) — The Securities and Exchange Commission (SEC) has settled insider trading charges against two affiliates of the giant hedge fund SAC Capital for $614 million.
According to the New York Times, the SEC said this was the biggest ever settlement for such cases.
One affiliate, CR Intrinsic, agreed to pay over $600 million over charges of one of their employees trading confidential information about the drug makers Elan and Wyeth. The other affiliate, Sigma Cipital Management, agreed to pay $14 million to settle charges of insider trading in stocks of Dell and Nvidia.
SAC’s management company will pay the settlements, which means the investors of the hedge fund will not be held accountable, the paper reports.
“The historic monetary sanctions against CR Intrinsic and its affiliates are sharp warning that the SEC will hold hedge fund advisory firms and their funds accountable when employees break the law to benefit the firm,” George S. Canellos, the acting director of the SEC’s enforcement division, said in a statement.
Copyright 2013 ABC News Radio
Stephan Rockefeller, EastIdahoNews.com
Nate Eaton, EastIdahoNews.com
Kathryn Vasel, CNN