By Nate Raymond
NEW YORK, Nov 5 (Reuters) - A hearing has been set forFriday for Steven A. Cohen's SAC Capital Advisors to pleadguilty to securities and wire fraud charges after years ofinvestigations into insider trading at the embattled hedge fund.
The proceeding was disclosed in an order by U.S. DistrictJudge Laura Taylor Swain in Manhattan made public Tuesday, theday after prosecutors announced SAC agreed to pay $1.2 billionin penalties as part of a plea agreement.
A separate hearing has been scheduled for Wednesday beforeU.S. District Judge Richard Sullivan, who is presiding over arelated civil forfeiture action against SAC.
SAC's settlement must ultimately win approval of both judgesto become effective.
Under the agreement announced Monday, SAC will plead guiltyto one count of wire fraud and four counts of securities fraud.The agreement came after the fund was indicted in July oninsider trading charges in connection with offenses committed byseveral employees over more than decade.
SAC will pay $1.2 billion as part of the accord, $900million of which goes toward resolving the criminal actionbefore Swain. The judge will likely after accepting SAC's pleaschedule a later date for sentencing.
In the civil case, Sullivan is being asked to approve a $900million forfeiture judgment, though SAC will get credit for $616million it agreed to pay in an earlier settlement with the U.S.Securities and Exchange Commission.
As part of the settlement, SAC also agreed to terminate itsinvestment advisory business. Cohen, who has not been personallycharged, is expected to continue managing about $9 billion ofhis own money via a so-called family office.
SAC said in a statement that it took "responsibility for thehandful of men who pleaded guilty and whose conduct gave rise toSAC's liability."
The plea hearing before Sullivan on Wednesday is at 10:30a.m. EST (1530 GMT). The plea hearing before Swain on Friday isscheduled for 3 p.m. EST (2000 GMT).
The case is USA v. S.A.C. Capital Advisors, L.P. et al, U.S.District Court, Southern District of New York, No. 13-cr-00541.
- Private Equity & Hedge Funds
- Crime & Justice
- SAC Capital Advisors
- Laura Taylor Swain