The U.S. Securities and Exchange Commission is considering establishing a victims’ fund with the $602 million that SAC Capital Advisors LP paid to settle an insider-trading case brought by regulators, Bloomberg News reported yesterday. The SEC told the Manhattan federal judge overseeing the case that it has been in contact about the “fair fund” with shareholders in Elan Corp. Plc and Wyeth LLC who claim they suffered losses as a result of an insider-trading scheme of convicted former fund manager Mathew Martoma. Martoma was sentenced last month to nine years in prison after being convicted of making $275 million for SAC by using illegal tips to trade in the pharmaceutical companies, the most lucrative insider-trading scheme in history. SAC Capital, now called Point72 Asset Management LP, agreed to pay $602 million to settle the regulators’ suit. The money was part of a $1.8 billion payment which SAC paid to the U.S. to settle criminal and civil cases.
