SAC Manager's Insider-Trading Trial Begins

Nov 19 2013 | 12:40pm ET

Arguably the most high-profile hedge-fund insider-trading trial since that of Galleon Group founder Raj Rajaratnam opens today.

Jury selection kicks off the trial of SAC Capital Advisors portfolio manager Michael Steinberg in New York federal court. Steinberg is accused of trading two technology stocks based on confidential information he received from his analyst.

That analyst, Jon Horvath, is cooperating with prosecutors and will testify against Steinberg. Prosecutors plan to open their case with SAC CFO Daniel Berkowitz, and may even seek to call SAC founder Steven Cohen.

Steinberg's lawyers plan to argue that he did not know that the information he got from Horvath was confidential.

Steinberg, who is on leave, is the highest-ranking SAC employee to be charged in the insider-trading crackdown--although SAC itself pleaded guilty to criminal charges earlier this month--and a personal friend of Cohen's. He is accused of earning the firm $3.1 million trading shares of Dell Inc. and Nvidia Corp., and faces up to 85 years in prison if convicted.

The trial, before U.S. District Judge Richard Sullivan, is expected to last up to four weeks.


In Depth

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.