Historic Insider Trading Deal A Warning To Hedge Funds

Law360, New York (March 15, 2013, 7:49 PM EDT) -- The U.S. Securities and Exchange Commission's record-breaking $600 million insider trading settlement with a unit of hedge fund SAC Capital Advisors LP sends a strong message to hedge funds that the SEC is getting more aggressive and isn't afraid to take on the big fish, experts say.

The settlement, reached Friday when SAC Capital unit CR Intrinsic agreed to pay back the profits it allegedly gained through an insider trading scheme orchestrated by portfolio manager Mathew Martoma plus fines, was the largest such settlement ever reached,...
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