[ by Melanie Gretchen ]

SAC Capital paid a record $600 million to settle SEC insider trading charges against affiliates, CR Intrinsic,  Another $14 million was the agreed-upon penalty to settle insider trading charges against a 2nd SAC Capital affiliate, Sigma Capital Management.  The settlements are subject to court approval.

Most significant it that the fines will be paid by SAC Capital management;  fund investors will not be impacted financially by in the settlement.  Also avoiding any direct impact is SAC Capital founder Steven A. Cohen.  By not being named in the SEC complaints, the hedge fund leader has remained virtually immune to charges made against many of his portfolio managers and traders.

A SAC Capital spokesperson "sealed the deal, saying:  "We are committed to continuing to maintain a first-rate compliance effort woven into the fabric of the firm." 

Deep Pockets.   Given the fact that SAC Capital Advisors has $15 billion under management, and its funds sport some of the best investment returns on Wall Street, SAC Capital is flush with money and $614 million is nothing more than a cost of doing business. 

Further, while the $602 million settlement in the CR Intrinsic/Martoma case is a prodigious sum, it's considerably less than the maximum that the SEC could have extracted.  The settlement agreement calls for SAC to pay about $275 million in disgorgement of illicit profits, $52 million in prejudgment interest, and $275 million in penalties. 

However, under securities laws, the SEC could have secured a penalty of treble (three times) damages, or $825 million.  Including that amount in the settlement would have strung a little more.

Dealbreaker's Bess Levin has some other choice words and thoughts on how the settlement may impact SAC Capital, including these gems:

• "I wonder if the SEC takes personal checks."  ["Oh, that kind of rich."]

• "I'm glad to see that the Wall Street Widows and Orphans Fund will have an expanded budget this year. Seriously, what do they do with that money? There's only so much you can spend on suits at JCPenney."

• "Vindicated!!!! ... Er, wait"

[Dealbreaker, 3/15/13]