(Updates with filing in third paragraph.)
March 27 (Bloomberg) -- SAC Capital Advisors LP urged a federal judge to approve its record $1.8 billion insider-trading settlement with prosecutors, saying the firm is “deeply remorseful” for the illegal acts of its employees.
SAC lawyer Martin Klotz urged U.S. District Judge Laura Taylor Swain in a two-page letter today to approve the agreement, which also calls for the firm to close its investment advisory business, in a sentencing hearing scheduled for April 10 in Manhattan.
“The defendants are deeply remorseful for the misconduct of each of the individuals who broke the law while employed by them,” Klotz wrote. “Even one person crossing the line into illegal behavior is unacceptable. The defendants are chastened by this experience, but are determined to learn from it.”
SAC was indicted last year, accused of reaping hundreds of millions of dollars in illegal profit through insider trades by employees dating to 1999. Steven A. Cohen, the firm’s founder, faces an administrative action by the Securities and Exchange Commission alleging he failed to supervise the hedge fund’s activities.
He has denied wrongdoing and isn’t charged with a crime. Eight current or former SAC employees have been convicted of insider trading charges.
“There can be no doubt that these and other penalties send a strong public message about the costs of the conduct that have brought the defendants before Your Honor,” Klotz wrote in the letter.
SAC Capital pleaded guilty in November. U.S. District Judge Richard Sullivan approved the $900 million settlement of a civil money-laundering case by the government that is part of the overall agreement. Swain will consider whether to approve a $900 million fine to resolve the criminal case.
Under the settlement, SAC will become a firm managing only Cohen’s personal wealth. The firm, which is changing its name to Point72 Asset Management, said in February it shrunk its headcount to 850 people from 1,000.
The case is: U.S. v. SAC Capital Advisors LP, 13-cr-00541, U.S. District Court, Southern District of New York.