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The Steve Cohen Era Is Over: S.A.C. To Plead Guilty To Securities Fraud, Stop Managing Outside Money

Nearly three years ago, before anyone had heard of expert networks, before the SEC had brought any major enforcement action against any hedge fund and long before anyone had to gall to accuse SAC of insider trading, Zero Hedge started a series of posts commencing with “Is The SEC’s Insider Trading Case Implicating FrontPoint A Sting Operation Aimed At S.A.C. Capital?” exposing the fraudulent transactions of Steve Cohne’s hedge fund despite fears of violent legal reprisals. We are delighted to inform our readers that this particular chapter is now over: the WSJ has just reported that SAC will plead guilty to securities fraud, pay a final $1.2 billion penalty (still a tiny sum compared to all the ill-gotten gains by Steve Cohen over the years), and most importantly, end the fund’s management of outside money.

From the WSJ:

SAC Capital Advisors LP will plead guilty to securities fraud as part of a landmark criminal insider-trading settlement with federal prosecutors set to be announced by next week, people familiar with the discussions said.

The exact timing of the pact isn’t set, and if final details are ironed out quickly, it could still be unveiled by the end of this week, these people said.

SAC, run by Wall Street titan Steven A. Cohen, also will agree to stop managing outside money and pay the government criminal penalties of about $1.2 billion, according to these people—which would be the largest-ever insider-trading penalty.

…

A spokeswoman for the Manhattan U.S. attorney’s office, Jennifer Queliz, declined to comment, as did SAC spokesman Jonathan Gasthalter, Federal Bureau of Investigation spokesman J. Peter Donald and SEC spokeswoman Judy Burns.

After any settlement is approved, Mr. Cohen would remain under criminal investigation, though no charges are expected against him barring unexpected developments in the probe, the people said.

And since in the hedge fund world the bulk of “retained earnings” comes not from capital appreciation, manipulated, centrally-planned markets or not, but from charging outside investors the exorbitant privilege of 2 and 20 or, in SAC’s case 3 and 50, the Steve Cohen era is now effectively over.

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/OaNw3uiGE2I/story01.htm Tyler Durden

Gary Weishaupt, 59

Gary Weishaupt, 59, of Augusta, Ga., beloved and devoted companion of Ms. Becky Wallace, entered into rest suddenly on Wed., Oct. 23, 2013.

Born in Japan and a resident of Augusta, Ga. and Lexington, S.C., most of his life, he was a son of the late John A. and Janice F. Weishaupt.

A Vietnam Veteran, he proudly served his country in the United States Army. He was Hiker with Penske. Gary enjoyed shooting pool and singing karaoke.

via The Citizen http://www.thecitizen.com/articles/10-29-2013/gary-weishaupt-59

Doris Pennington Gould, 89

Mrs. Doris Pennington Gould, 89, of Louisville, Ga., died Monday, Oct. 28, 2013, surrounded by her loving family.

Mrs. Gould was born Nov. 25, 1923, the daughter of Moody T. and Lena Eason Evans of Matthews. The widow of Gailord Gould of Grovetown, Mrs. Gould was a graduate of Wrens High School and a caregiver for many years. She was a member of Mt. Moriah United Methodist Church.

Funeral services will be held Thursday at 11 a.m. at James Funeral Home in Wrens, Ga. Visitation will be held Wednesday evening from 6-8 p.m. at the funeral home. Pallbearers will be grandsons.

via The Citizen http://www.thecitizen.com/articles/10-29-2013/doris-pennington-gould-89

Lynette M. White, 97, of Fayetteville

Mrs. Lynette M. White, 97, of Fayetteville, died Oct. 26, 2013.

She was born in Union, S.C. and was the #1 mother and grandmother in the world to her family.

She was preceded in death by her husband Claude P. White, daughter Barbara Jean Wood and granddaughter Carrie White Dunn.

She is survived by her daughter Carolyn & George Barker of Locust Grove; Christine & Cecil Turner of Locust Grove; son Claude Phillip & Brenda White of Fayetteville; daughter Cindy & Sidney Funk of Fayetteville; 5 grandchildren and 14 great-grandchildren as well as several nieces and nephews.

via The Citizen http://www.thecitizen.com/articles/10-29-2013/lynette-m-white-97-fayetteville

Here’s what we’ve done so far with visioning for Fayette

By ROBERT ROSS and TREY RAGSDALE

As soon as 150 Fayette citizens and the steering committee decided on Oct 18 that Fayette should develop a vision statement and implementing plan, Fayette immediately took steps to do so.

via The Citizen http://www.thecitizen.com/blogs/robert-ross/10-29-2013/here%E2%80%99s-what-we%E2%80%99ve-done-so-far-visioning-fayette

Hey, GOP, put on a happy face

“Bye Bye Birdie” is an old musical that survives in high school productions and in some people’s memory bank. It debuted on Broadway in 1960 and was made into a film in 1963. One of the songs from the show might serve as an inspiration, if not a theme, for Republicans in the winter of their discontent over President Obama and congressional Democrats: “Put on a Happy Face.”

A problem Republicans have had since the “glory days” of Ronald Reagan is that too many have forgotten how to be positive and affirming. Nobody likes to be around a sourpuss.

via The Citizen http://www.thecitizen.com/blogs/cal-thomas/10-29-2013/hey-gop-put-happy-face

The results of race hustling

Bob Costas is one of the premier sportscasters and a very smart guy, so it was somewhat surprising to see him join the chorus of those decrying the fact that the owner of the Washington Redskins is resisting the pressures to change the name of his football team.

via The Citizen http://www.thecitizen.com/blogs/thomas-sowell/10-29-2013/results-race-hustling

Don’t wait on some day

“Some day,” Daddy used to say often as I was growing up, “I’m going to the Holy Land. I want to walk where Jesus walked.”

He talked about it a lot and dreamed about it even more. In those days before the world was presented to us wrapped up in a passel of knowledge known as the Internet, Daddy bought big maps of that storied land.

They were gingerly rolled up and tied with a ribbon after each time he spread them out on the kitchen table and studied them like a child studying a new game.

via The Citizen http://www.thecitizen.com/blogs/ronda-rich/10-29-2013/don%E2%80%99t-wait-some-day

Westmoreland needs fresh ideas

I’m a conservative and have voted and contributed to GOP candidates since the mid-1970s; heck, I even voted for Hal Suit for governor in 1970.

That said, I’m extremely disappointed in our local Republican congressman, Lynn Westmoreland. Together with other Tea Partiers, he chose to follow a wrong-headed strategy that put this nation at grave economic risk.

via The Citizen http://www.thecitizen.com/articles/10-29-2013/westmoreland-needs-fresh-ideas

Nixon and Obama

Remember when they said of Richard Nixon, “Would you buy a used car from this man?”

“You don’t have to change your current doctor.”

“If you like your plan, you can keep it.”

“Premiums will go down $2,500 per family.”

Frank Pepper
Fayetteville, Ga.

via The Citizen http://www.thecitizen.com/articles/10-29-2013/nixon-and-obama