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The Justice Department's indictment doesn't name Cohen as a defendant. But the agreement doesn't preclude future criminal charges against him. Nor does it resolve a civil case that the SEC brought against him in July that alleges he failed to prevent insider trading at SAC. The SEC seeks to fine Cohen and bar him from managing investor funds. Cohen has disputed the allegations. Q: Is this the end of SAC? A: In a way, it is. Under the deal, the company can no longer make investments on behalf of clients. But about half of the estimated $15 billion in assets that SAC managed at one point this year belonged to Cohen and his employees. So the company is free to continue investing that money. Q: What will the penalty money be used for? A: The $1.8 billion penalty will go to the U.S. Treasury. Q: How does the SAC case compare with similar cases? A: For many, the term insider trading conjures images of Ivan Boesky and Michael Milken, powerful financiers who made headlines for sensational scandals in the 1980s. And who can forget Michael Douglas portraying Gordon Gekko, who taught audiences that "greed is good." The SEC files dozens of insider trading cases each year. Many are small cases that fall below the public's radar. But sometimes they ensnare famous people. In 2004, Martha Stewart went to jail for lying to the SEC in a case that accused her of avoiding $45,000 in stock losses. Dallas Mavericks owner Mark Cuban won a yearslong fight last month with the SEC. Jurors decided Cuban didn't violate the law when he sold his stake in an Internet company in 2004. Prior to the SAC's deal, the biggest insider trading case involved Raj Rajaratnam, a one-time billionaire and founder of the Galleon group of 14 hedge funds, and others linked to him. Rajaratnam is serving an 11-year prison sentence for reaping up to $75 million through illegal trading.
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