WASHINGTON — The beleaguered hedge fund owned by billionaire Steven A. Cohen agreed to pay $1.2 billion to settle charges accusing it of encouraging rampant insider trading for more than a decade, a record deal that could sink one of Wall Street’s most successful hedge funds.
As part of the deal, announced Monday by US Attorney Preet Bharara in Manhattan, SAC Capital Advisors has agreed to plead guilty to every one of the five counts in the indictment unveiled in July. It also agreed stop managing the money of outside investors.
The deal marks the results of a multiyear effort to close in on a storied hedge fund that has racked up stellar profits since Cohen founded it in 1992. It is also one of the most high-profile blows in the government’s long-running push to cripple insider trading on Wall Street. Full story for BostonGlobe.com subscribers.