Smaller SAC Insider-Trading Pact Approved

Apr 2 2013 | 11:45am ET

SAC Capital Advisors' record $616 million settlement of insider-trading charges was actually two settlements. And the much smaller of the pair, unlike the larger, has won the necessary approval of a federal judge.

U.S. District Judge Harold Baer late Friday signed off on a $14 million pact between SAC's Sigma Capital Management unit and the Securities and Exchange Commission. That deal covers alleged insider-trading in Dell Inc. and Nvidia Corp. shares by two of the firm's portfolio managers, one of whom, Michael Steinberg, was arrested last week.

Steinberg and the other portfolio manager, Gabriel Plotkin, allegedly traded on confidential information provided to them by former Sigma Capital analyst Jon Horvath. Horvath has pleaded guilty and is cooperating with prosecutors. Steinberg has pleaded not guilty. Plotkin has not been accused of any wrongdoing.

Baer's routine approval of the $14 million deal stands in stark contrast to the refusal of his colleague on the federal bench in Manhattan, U.S. District Judge Victor Marrero. Marrero said last week he needed more time to consider SAC's $602 million settlement, stemming from the allegedly illicit trading of former portfolio manager Mathew Martoma. Marrero said he was concerned about an upcoming appeals court decision dealing with the SEC's practice of striking settlements without admissions or denials of wrongdoing, as is the case in both of the SAC deals.

Martoma has pleaded not guilty.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…