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Federal judge sentences SAC Capital in $1.8b fraud deal

SAC Capital general counsel Peter Nussbaum stood in US District Court in Manhattan Thursday, where the hedge fund’s criminal settlement received final approval.
SAC Capital general counsel Peter Nussbaum stood in US District Court in Manhattan Thursday, where the hedge fund’s criminal settlement received final approval.Jane Rosenberg/Reuters

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The once high-flying hedge fund SAC Capital was sentenced on criminal fraud charges Thursday under a $1.8 billion deal that prosecutors say included the largest criminal fine ever imposed in an insider trading case.

US District Judge Laura Taylor Swain in Manhattan formally administered the sentence on Stamford, Conn.-based SAC Capital LP and three related entities based on pleas last fall by the companies to wire fraud and securities fraud.

‘‘These crimes clearly were motivated by greed,’’ Swain said.

The judge said nearly $400 million earned illegally by one of the companies was a ‘‘staggering amount’’ reflecting a corrupt corporate culture.

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