|A Manhattan federal judge has stepped in to question a record $602 million settlement between SAC Capital Advisors and the SEC, which has been investigating the hedge fund firm for insider-trading. According to the New York Post, Judge Victor Marrero objects to the language included in the settlement that allows Steve Cohen’s SAC Capital Advisors to “neither admit nor deny” wrongdoing. Citing the another court case involving Citigroup, in which the appeals court judge rejected a settlement for the use of similar language, Judge Marrero, may wait for the outcome to determine how he would rule. |
The judge also expressed concerns over inconsistencies between the SEC’s willingness to let SAC Capital Advisors off with a slap on the wrist while federal prosecutors vigorously pursue criminal actions against Mathew Martoma, the trader charged with providing SAC Capital Advisors with inside information.