No Cohen Questions For Steinberg Analyst

Dec 12 2013 | 12:01pm ET

Given the chance to question their star witness about SAC Capital Advisors founder Steven Cohen, prosecutors in the insider-trading case against SAC portfolio manager Michael Steinberg demurred.

U.S. District Judge Richard Sullivan ruled yesterday that prosecutors could ask Jon Horvath, who served as Steinberg's analyst, about his cooperation in the probe of Cohen, who has not been charged with any wrongdoing. The government apparently hoped to use the questions to show that Horvath had fingered only guilty parties, and had not implicated Cohen himself.

Sullivan said he didn't see why the jury shouldn't hear about "the biggest whale in the company." But he warned that while the questions were permitted, they might not be "prudential."

The prosecutors did not say why they opted against the Cohen line of questioning. Sullivan had warned that Horvath, who completed his ninth and final day of testimony yesterday, would be subjected to extensive cross-examination on the matter, although prosecutors said they didn't think Steinberg's lawyer, Barry Berke, would drag it out.

Horvath was asked if he knew that he was providing information about the government's probe into SAC itself, and said yes. SAC last month pleaded guilty to insider-trading charges.

Two other members of Horvath's insider-trading circle are set to follow him on the witness stand.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...