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Judge sentences SAC Capital in $1.8B fraud deal

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

U.S. 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 made by a lawyer for the companies last fall to wire fraud and securities fraud.

“These crimes clearly were motivated by greed,” Swain said.

The judge said the nearly $400 million earned illegally by one of the four entities was a “staggering amount” and reflected a corporate culture that sought out portfolio managers and analysts capable of capitalizing on corrupt employees at public companies who would feed them inside information.