Tuesday, 21 October 2014
Last updated 11 hours ago
Apr 4 2013 | 12:42am ET
SAC Capital Advisors portfolio manager Michael Steinberg's lawyer has begun his client's defense against insider-trading charges by potentially antagonizing the judge who could decide Steinberg's fate.
At Steinberg's Friday arraignment, Barry Berke asked U.S. District Judge Richard Sullivan to step aside and allow the case to be randomly assigned to a new judge. Berke alleged that Sullivan was too easy on prosecutors in a past insider-trading case compared to two other judges on the Manhattan federal bench.
Sullivan was assigned the case because it is related to that against Level Global Investors co-founder Anthony Chiasson and former Diamondback Capital Management portfolio manager Todd Newman, whose trial he oversaw last year. The two were indicted alongside Steinberg's former analyst, Jon Horvath, who is cooperating with prosecutors, and are listed as co-conspirators in the case against Steinberg.
Chiasson and Newman were convicted in December.
Berke noted that Sullivan did not require prosecutors to show that Chiasson and Newman knew about the personal benefits their tippers received, as his colleagues Jed Rakoff and Richard Holwell did in other cases. Berke called it a "significant legal issue."
Sullivan said he would "consider" Berke's request, but assured Steinberg that even if he rejected it, he would be an impartial arbiter.
"Don't believe Mr. Berke, I'm not as bad as he says," Sullivan said. "If you get stuck with me, it could be worse."
According to Reuters, from Steinberg's perspective, he might be as bad: Court records show Sullivan has handed down harsher sentences than his colleagues in insider-trading cases.
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...