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

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this race. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.