SAC Manager Has Exculpatory E-Mails

Oct 7 2013 | 11:20am ET

Next month's trial of SAC Capital Advisors trader Michael Steinberg could come down to a battle of dueling e-mails.

Prosecutors have disclosed a number of incriminating messages in court filings, seeking to show that Steinberg traded on technology shares based on confidential tips acquired by his former analyst. But, according to Reuters, Steinberg's lawyers have marshaled a number of undisclosed e-mails that could contradict the government's evidence.

One of the key e-mails disclosed by prosecutors shows Steinberg's former analyst, Jon Horvath, who had pleaded guilty and is cooperating with the investigation, telling his boss that Dell Inc. would miss its earnings estimate. Steinberg's defense team plans to show his response, telling Horvath he didn't believe him.

Steinberg was arrested in March, becoming the seventh current or former SAC employee charged with insider-trading in the last four years. Steinberg is also the most senior person charged, having worked for SAC for 16 years and closely with firm founder Steven Cohen. SAC has said it believes Steinberg has done nothing wrong.

SAC itself was slapped with a criminal indictment in July; it is challenging the allegations.


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