SAC trader arrested for insider dealing

FBI says Michael Steinberg has been put under arrest, in latest push by US authorities against the hedge fund
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First Published: Fri, Mar 29 2013. 08 38 PM IST
The SAC Capital Advisors headquarters in Stamford, Connecticut. Photo: Reuters
The SAC Capital Advisors headquarters in Stamford, Connecticut. Photo: Reuters
Updated: Fri, Mar 29 2013. 11 49 PM IST
New York: Federal Bureau of Investigation (FBI) officials on Friday arrested a trader from SAC Capital for insider trading, in the latest push by authorities against the controversial hedge fund.
The trader, Michael Steinberg, “has been put under arrest at 6am at his residence following an FBI insider trading investigation,” an FBI spokesperson said.
Steinberg worked as a portfolio manager at SAC affiliate Sigma Capital Management, which two weeks ago agreed to pay $14 million over insider trading charges related to the quarterly earnings of Dell and Nvidia.
Earlier in March Sigma analyst Jon Horvath settled charges against him related to those cases.
Steinberg’s attorney Barry Berke told the Wall Street Journal on Friday that his client “did absolutely nothing wrong.”
“His trading decisions were based on detailed analysis” and information that Steinberg “understood had been properly obtained through the types of channels that institutional investors rely upon on a daily basis.”
Berke couldn’t be immediately reached for comment.
Besides the Sigma fine, also on 15 March the Securities and Exchange Commission hit SAC affiliate CR Intrinsic Investors with a record $602 million penalty to settle charges that it earned massive profits on confidential information involving the clinical trial of an Alzheimer’s drug.
Federal officials have been engaged for several years in an extensive probe of SAC and its head, billionaire Steven Cohen, over insider trading allegations.
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First Published: Fri, Mar 29 2013. 08 38 PM IST
More Topics: SAC | Michael Steinberg | Insider trading | FBI |
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