Hedge-fund giant, SAC Capital Advisors has indicated that it has agreed to plead guilty to charges of criminal insider trading, in a move that would conclude Steven A. Cohen's carrier as Wall Street's most profitable trader.

SAC Capital Advisors has become the first major financial firm in recent times to it criminal conduct and agreed to pay a record $1.2 billion in penalties to settle claims. The government's rules will now ban the company from managing the money from investors.

SAC Capital Advisors is expecting its investors to pull out money from the firm, which could severely affect its market value, over a continuing insider trading probe in the company, according to people closer to the matter.

The firm, which was founded by highly regarded investor, Steven A. Cohen, has been returning gains from the previous 20 years. It is believed that the government investigation is having an impact on the company's reputation and investor confidence in the company. Mr. Cohen and other SAC executives might also consider turning the company into a family office that would only look after a wealthy family's money and not cater to external clients.