SAC portfolio manager Michael Steinberg is scheduled to go on trial Nov. 18 for allegedly engaging in insider trading in Dell Inc. and Nvidia Corp. based on illicit tips provided by Jon Horvath, his analyst. Horvath, who has pleaded guilty and is cooperating with the U.S., is scheduled to be a witness against Steinberg, who is the longest-serving SAC employee of those the U.S. has charged in its insider-trading probe.

Mathew Martoma, a former fund manager for a unit of SAC, has a January trial date. He’s accused of using inside information from two doctors who were involved in the clinical trial of an Alzheimer’s drug to trade shares of Elan Corp. and Wyeth. The government has called it the biggest criminal insider-trading case against an individual in history.

As part of the agreement, SAC will name an independent compliance consultant who will be approved by the government, according to prosecutors. SAC Capital and its funds named in the indictment are pleading guilty to all five counts, including securities fraud and wire fraud. Each of the SAC entities will be under a term of five years’ probation, the U.S. said.

‘Market Cheaters’

Manhattan U.S. Attorney Preet Bharara in July called the hedge fund “a veritable magnet for market cheaters” and said the company had “zero tolerance for low returns but seemingly tremendous tolerance for questionable conduct.”

While Cohen wasn’t charged, prosecutors said he “encouraged” SAC employees to obtain trading information from company insiders while ignoring indications that it was illegal.

Clients have pulled their money out of SAC as the government investigation progressed. Executives at the hedge fund, which oversaw about $15 billion in assets at the start of 2013, expect to begin 2014 with about $9 billion.

The agreement is contingent upon the approval of U.S. District Judge Laura Taylor Swain, who is presiding over the criminal case, and U.S. District Judge Richard Sullivan, who is overseeing the civil money-laundering case.

The criminal case is U.S. v. SAC Capital Advisors LP, 13- CR-00541, U.S. District Court for the Southern District of New York (Manhattan). The civil case is U.S. v. SAC Capital Advisors LP, 1:13-cv-5182, U.S. District Court, Southern District of New York (Manhattan).

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