Last week, reports were buzzing that a major shoe was about to drop in the federal government’s case against Stamford’s SAC Capital Advisors.
Word on the street was that the embattled hedge fund — the brainchild of Greenwich’s multibillionaire Steven A. Cohen — could at any moment plead guilty to securities fraud, agree to stop managing outside money and pay the government criminal penalties of about $1.2 billion.
The Wall Street Journal was first to report that, citing people familiar with the discussions between the government and hedge fund.
Even then, though, it sounded likelier that the deal would be finalized this coming week — and since it didn’t happen last week, stay tuned now for what could be the largest-ever insider-trading penalty handed out by the government, along with the first time that SAC would admit to wrongdoing concerning the securities fraud allegations.
It would also come in addition to the $616 million civil insider-trading settlement SAC Capital reached in March with the Securities and Exchange Commission.