Hedge Fund Officials Plead Guilty to Insider Trading

SAC Capital Advisors, a large hedge fund on Wall Street, faces a huge penalty after company officials pleaded guilty Monday to insider trading.

Insider trading involves public companies trading stocks based on confidential information. SAC Capital Advisors is going to pay a record 1.2 billion dollars to the federal government.

This is the time in more than twenty years that a company has been fined for confessing to criminal misconduct.

SAC Capital Advisors has about one thousand employees and more than eight satellite offices in the world.