Friday, 25 July 2014
Last updated 5 hours ago
Dec 5 2013 | 1:21pm ET
The government's star witness in the trial of SAC Capital Advisors portfolio manager Michael Steinberg is having his memory tested on the stand—and it is a test that he is frequently failing.
Jon Horvath endured a second day of cross-examination by Steinberg's lawyer, Barry Berke, yesterday. Horvath acknowledged some lapses of memory on Tuesday, and Berke continued the attack yesterday.
Asked when he learned that a friend, fellow cooperating witness Jesse Tortora, was passing him insider information about Dell Inc., Horvath said he didn't "remember when I figured it out," adding, "clearly in 2008, I was aware I got" confidential tips.
Berke asked if Horvath ever thought to ask about the source of the information.
"Do you mean from a profitability standpoint?" Horvath asked.
"How about from a following the law standpoint," Berke shot back. "Did you care about being a criminal?"
"Yeah, at that point, I don't think I was too concerned about it," Horvath said.
Horvath also admitted that Steinberg's own contacts with Tortora were limited—and that he knew of no contacts between the two in 2008, when the illicit trading allegedly occurred.
Horvath also testified that Steinberg, at his behest, tried to help Tortora get a job in 2007.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…