Tuesday, 31 March 2015
Last updated 53 min ago
Nov 22 2013 | 11:43am ET
Prosecutors used a confessed insider-trader to lay the groundwork for their case against SAC Capital Advisors portfolio manager Michael Steinberg.
According to the government, Jesse Tortora was a key cog in the "pipeline" of illicit information that leads to Steinberg, who is accused of illegally trading two technology stocks. Tortora, a former analyst at Diamondback Capital Management, told the jury that he passed tips to Steinberg's former analyst, Jon Horvath, the key witness in the case, and that Horvath told him that he had shared the information with Steinberg.
Tortora, who previously testified against his former boss at Diamondback, Todd Newman, who was convicted and sentenced to four-and-a-half years in prison, said that one tip about Dell Inc. came from an employee of the computer-maker, Rob Ray, and made its way through several analysts before it reached Tortora. Tortora said he learned about it from Sandeep Goyal, a former Neuberger Berman Group analyst who has also pleaded guilty in the case.
Three days after his lunch with Goyal, in August 2008, Tortora said he e-mailed Horvath.
Tortora told the jury that trading on confidential information "allowed us to be more effective, more efficient and more profitable than working alone." Prosecutors showed the panel an e-mail from Tortora to Horvath and other alleged members of the insider-trading ring reading, "Enjoy. Your perf will now go up 100% in 09 and your boss will love you."
Prior to Tortora's testimony, SAC CFO Daniel Berkowitz explained the firm's bonus policy, particular "Cohen tag bonuses"—those received for the best ideas that firm founder Steven Cohen adopted. Generators of such ideas "would receive a bonus, depending on how big the trade was," Berkowitz said.
Steinberg's lawyer, cross-examining Berkowitz, sought to show that his client was just doing his due diligence. Berkowitz said that analysts routinely "meet with companies, suppliers, vendors and other market participants," and that "proprietary company-specific analysis" was legitimate.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…