SAC Capital had pleaded guilty to five counts of criminal charges only to be refused by the government reports The New York Times' the Deal Book.

On Monday, SAC agreed to the guilty charge of violating insider trade and paid USD1.2 billion in penalty. SAC become the first Wall Street firm who had confessed to criminal comportment. From the interviews with people involved in the case and negotiations, the charges illuminated how aggressive the US government was to digging up the deal.

SAC has been imposed a five-year probation. The firm would also be subject to terminating business of money management for outside investors. However, Sac's massive fortune would still be managed by SAC.

Manhattan-based United States attorney Preet Bharara stated, "No institution should rest easy in the belief that it is too big to jail."

SAC's penalty of USD1.2 billion was added to the USD616 million in insider trading fines of which the firm agreed to pay to the Securities and Exchange Commission. Mr. Cohen paid said penalties himself given he owns 100% of the firm.