What's next for SAC Capital?

Steven A. Cohen's hedge fund just got hit with a record insider trading fine

Cohen
(Image credit: (REUTERS/Steve Marcus))

Billionaire Steven A. Cohen's hedge fund, SAC Capital Advisors, has agreed to plead guilty to insider trading charges and pay a record $1.8 billion fine, said federal prosecutors on Monday.

In addition, SAC will close its doors on outside funds, limiting the firm's investment activity to Cohen's own $8 billion nugget, and forcing him to return what is left of the $6 billion in outside investments to clients.

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Carmel Lobello is the business editor at TheWeek.com. Previously, she was an editor at DeathandTaxesMag.com.