The hedge fund giant SAC Capital has agreed to plead guilty to securities fraud and pay a record $1.2 billion fine. Under the agreement, SAC admits to a massive insider trading scheme that reaped hundreds of millions of dollars in profit for the firm and its billionaire owner, Steven Cohen, over more than a decade. Preet Bharara, the U.S. attorney for the Southern District of New York, unveiled the settlement.

Preet Bharara: “All of the charged SAC companies have agreed to plead guilty. All have agreed to wind down and close their outside investment businesses, and all have agreed collectively to pay total fines and penalties in the record amount of $1.8 billion. Today’s agreements, if approved, would resolve the two cases brought by the government against SAC in July, both the criminal indictment against the SAC companies and a separate civil forfeiture and money laundering action, as well.”

The case marks the first time a major Wall Street firm has admitted to criminal wrongdoing in nearly 30 years. Although SAC will no longer manage outside investments, it will continue to operate with owner Steven Cohen’s estimated $9 billion fortune.