More trouble for Cohen's SAC Capital as Steinberg indicted in NY
ReutersReuters – 1 hour 19 minutes ago March 29
By Nate Raymond and Matthew Goldstein
(Reuters) - U.S. prosecutors on Friday charged Michael Steinberg, a veteran portfolio manager at Steven A. Cohen's hedge fund, with insider trading in two technology stocks, the most senior SAC Capital Advisors' employee to be indicted in the government's long-running probe.
FBI agents arrested Steinberg at his Park Avenue home in New York City at around 6 a.m. EDT (1000 GMT). Steinberg, wearing a blue sweater, pleaded "not guilty" to charges of securities fraud and conspiracy to commit securities when he appeared at a late morning arraignment.
The five-count indictment charges Steinberg, 40, with using inside information to trade shares of computer maker Dell Inc and chipmaker Nvidia Corp in 2008 and 2009 that generated about $1.4 million in illegal profits for Cohen's $15 billion hedge fund.
In a related civil complaint against Steinberg, the U.S. Securities and Exchange Commission said the information allowed Steinberg to generate $6.4 million in profits and avoided losses for the hedge fund.
Barry Berke, Steinberg's lawyer, said in a statement that his client had done "absolutely nothing wrong" and his "trading decisions were based on detailed analysis."
The charges come after a tumultuous six months for Cohen, one of the most successful hedge fund traders. It began with last November's arrest of former SAC portfolio manager Mathew Martoma in what prosecutors had described as the largest U.S. insider-trading case.
When the WS club is dominated by thieves they give their related ilk a bad stain. Until these folks get hard time and we have a house cleaning nothing will change. I am not anti anybody just sayin when the shoe fits shut up and wear it . Happy Holidays.
Another BIGOT (en_credible) . What is with some of the #$%$ on this board. If you notice not one person of the Jewish faith has take a shot back at this #$%$ bag. I do not see where a persons faith has anything to do
with how they choose to respond in the business community. Just maybe this person needs to attend church services and ask JESUS for forgiveness.
Just read this article before your post...I can't wait to see endictments start rolling out for all of the HF manipulation that has been plaguing ARNA. Just because nobody is knocking on your door right now doesn't mean they aren't busy building a case against you. Naked shorting is illegal!!!