Wednesday, 3 June 2015
Last updated 1 hour ago
Dec 5 2013 | 10:36am ET
If Michael Steinberg goes to prison, federal prosecutors will have former Dell Inc. employee Daniel DeVore to thank, in part. And for that, his lawyer says, he should be spared time behind bars.
DeVore lawyer Johnny Sutton asked U.S. District Judge Jed Rakoff to sentence his client to probation. DeVore, a former supply manager at Dell who has cooperated with the authorities and who pleaded guilty three years ago, could face up to 25 years in prison at his sentencing tomorrow.
"Daniel DeVore is a good man who violated the law but took responsibility for his actions from the outset," Sutton wrote, adding that his client has been "humbled by these proceedings."
Prosecutor Antonia Apps backed Sutton's assertion that DeVore's cooperation helped bring three hedge fund managers, including Steinberg, to justice, although she said it was now unlikely that he would testify against the SAC Capital Advisors portfolio manager. The identity of the other two traders DeVore provided information against was withheld, as they have not been charged.
"DeVore has provided information that has been helpful to various investigations by the U.S. Attorney's Office and the Securities and Exchange Commission," Apps wrote. "DeVore has provided incriminating information against a number of hedge fund professionals who received DeVore's inside information while he was acting as a consultant."
In addition to his work at Dell, DeVore moonlighted as an expert-network consultant at Primary Global Research, four of whose employees and consultants have been convicted of insider-trading. DeVore said he passed tips on to both Jesse Tortora—who says he in turn passed them to his boss, Diamondback Capital Management trader Todd Newman, and to Steinberg's analyst, Jon Horvath—and Spyridion Adondakis, who says he passed the tips to his boss, Level Global Investors co-founder Anthony Chiasson.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…