SAC Capital Advisors will plead guilty to US criminal fraud charges, stop investing money for others and pay $US1.8 billion ($A1.91 billion) to resolve criminal and civil claims against the hedge fund giant.
It's the largest financial penalty in history for insider trading.
The US government said in a letter to judges presiding over Manhattan cases that the "proposed global resolution" of the criminal and civil cases against SAC Capital Advisors and related companies also includes an agreement that SAC will cease operating as an investment adviser and will not accept any additional funds from third-party investors.
The company will pay a $US900 million fine and forfeit another $US900 million to the federal government, though $US616 million that SAC companies have already agreed to pay to settle parallel actions by the US Securities and Exchange Commission will be deducted from the $US1.8 billion.
The government called the penalties "steep but fair" and "commensurate with the breadth and duration of the charged criminal conduct."
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A spokesman for SAC Capital did not immediately return messages for comment.
In a statement, FBI Assistant Director George Venizelos said SAC Capital's plea demonstrates "that cheating and breaking the law were not only permitted but allowed to persist".
The deal did not resolve a civil case that the SEC brought in July against SAC Capital's billionaire founder, Steven Cohen.
He was accused of failing to prevent insider trading at the company, which he founded in 1992 and which bears the initials of his name.
The SEC sought to fine Cohen and effectively shut him down by barring him from managing investor funds.
Cohen has disputed the SEC's allegations.
He rose to become one of the highest-profile figures in US finance and the 40th-richest American, with a net worth of $US8.8 billion, according to Forbes.
He is among an elite group of hedge fund managers who have personally earned at least $US1 billion a year.
Criminal charges were filed in July against the Stamford, Connecticut-based SAC Capital.
As part of the plea, SAC Capital LP, SAC Capital Advisors LLC, CR Intrinsic Investors LLC and Sigma Capital Management LLC, will plead guilty to a single count of wire fraud and four counts of securities fraud, the government said.
