Tuesday, 30 September 2014
Last updated 37 sec ago
Apr 1 2013 | 10:06am ET
Michael Steinberg, the most senior current or former SAC Capital Advisors employee to be charged with insider trading, pleaded not guilty to conspiracy and securities fraud charges on Friday.
Steinberg, a close associate of SAC founder Steven Cohen, was arrested at his Manhattan apartment on Friday morning and appeared before a federal judge later that morning to plead not guilty. He was released on a $3 million bond, secured by $1 million in property.
“Michael Steinberg did absolutely nothing wrong,” his lawyer, Barry Berke, said. “Caught in the cross-fire of aggressive investigations of others, there is no basis for even the slightest blemish on his spotless reputation.”
At Friday morning's hearing, prosecutors said that SAC had not been served with a search warrant in connection with Steinberg's case. Steinberg works at the hedge fund's New York City office, in its Sigma Capital Management unit, although he has been on leave since September, when he was identified as an unindicted co-conspirator in the trial of two other hedge fund managers, both of whom were convicted.
Steinberg is accused of trading Dell Inc. and Nvidia Corp. shares based on confidential information acquired by Jon Horvath, his former analyst, from analysts at other funds, earning SAC $3.1 million in illicit profits and losses avoided. Prosecutors have cited e-mails that show Horvath asking Steinberg to remain mum about some of the information he offered.
Horvath has pleaded guilty and is cooperating with prosecutors, and SAC earlier this month agreed to pay $14 million to settle allegations stemming from trades made by Steinberg and another portfolio manager based on Horvath's tips. A larger, $602 million, settlement was also struck, relating to a different insider-trading case.
SAC also stood up for Steinberg, with a statement reading, "Mike has conducted himself professionally and ethically during his long tenure at the firm. We believe him to be a man of integrity."
If convicted, Steinberg, who has worked at SAC since 1997, faces up to 85 years in prison.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...