Stamford Hedge Fund Sentenced For Insider Trading To Pay Largest Ever Criminal Fine

CBS New York

NEW YORK (CBSNewYork/AP) – A Manhattan judge has sentenced SAC Capital on criminal fraud charges Thursday under a $1.8 billion deal that prosecutors say included the largest criminal fine ever imposed in an insider trading case.

U.S. District Judge Laura Taylor Swain formally administered the sentence on Stamford, Conn.-based SAC Capital LP and three related entities based on pleas made by a lawyer for the companies last fall to wire fraud and securities fraud.

“These crimes clearly were motivated by greed,” Swain said.

The judge said the nearly $400 million earned illegally by one of the four entities was a “staggering amount” and reflected a corporate culture that sought out portfolio managers and analysts capable of capitalizing on corrupt employees at public companies who would feed them inside information.

Both sides had asked Swain to follow the terms of the agreement announced in November.

In a statement issued immediately after…

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