Wednesday, 24 August 2016
Last updated 12 hours ago
Oct 1 2012 | 1:42pm ET
SAC Capital Advisors has put a top portfolio manager on leave after he was identified as an unindicted co-conspirator in an insider-trading case.
Michael Steinberg went on leave last week, Bloomberg News reports. The same organization identified him as one of four unindicted co-conspirators in a $62 million insider-trading scam that has netted six guilty pleas, including that of a former Steinberg employee, Jon Horvath.
Horvath entered his plea on Friday. And while neither he nor prosecutors have publicly named Steinberg—his name and those of his fellow unindicted co-conspirators were blacked-out of a filing by prosecutors earlier this month—that filing identifies one as "the portfolio manager to who Jon Horvath reported at his hedge fund."
Horvath worked for Steinberg at SAC's Sigma Capital Management division. Steinberg has worked at SAC since 1997.
At his allocution last week, Horvath said that he provided the confidential information he received "to the portfolio manager I work for and we executed trades in the stocks based on that information."
Neither SAC nor Steinberg have been charged with any wrongdoing. But the Federal Bureau of Investigation had earlier sought cooperation from research firm head John Kinnucan—who pleaded guilty himself to insider-trading charges earlier this year—to record conversations with Steinberg, but Kinnucan refused.
Horvath pleaded guilty just a month before his trial, alongside Level Global Investors co-founder Anthony Chiasson and former Diamondback Capital Management trader Todd Newman, was to begin. U.S. Attorney Preet Bharara has accused the men of belonging to a "criminal club" that shared confidential tips about technology companies and illegally traded their stocks.