NEW YORK (CNNMoney)
A high-ranking trader at SAC Capital -- the hedge fund run by billionaire Steven Cohen that is at the center of a federal investigation into insider trading -- was charged with securities fraud Friday, according to federal authorities.
Michael Steinberg, a portfolio manager at SAC Capital, was charged with five counts -- including securities fraud and conspiracy to commit securities fraud -- for allegedly short-selling computer stocks Dell (DELL, Fortune 500) and Nvidia (NVDA) based on inside information, according to documents from the office of the U.S. Attorney for the Southern District of New York.
"Mr. Steinberg was at the center of an elite criminal club, where cheating and corruption were rewarded," said FBI Assistant Director George Venizelos, in a prepared statement.
Steinberg was arrested at 6 a.m. ET at his Manhattan residence, according to an FBI spokesman.
Insider trading is the key here. That's what will get you every time. It isn't just short sellers, either.
Look at Raj Rajaratnam - he was long only.
Crooks come in all shapes and sizes
Wow . . . shocked and dismayed that manager's of this caliber would stoop to such things. Cheating? Corruption? Conspiracy? Shame on them - maybe they should all be forced to attend temple on Saturday, where all the money-changers gather and conspire. Until they take one of the big boys down, like Cohen or Dimon is will go on forever with a little slap on the wrist. LMAO