SAC Capital portfolio manager Steinberg arrested in NY-FBI

Reuters

(Reuters) – Michael Steinberg, a portfolio manager at Steve Cohen’s $15 billion SAC Capital Advisors, was arrested by the Federal Bureau of Investigation at his home in New York City early Friday morning in connection with a long-running insider trading investigation of the hedge fund, a FBI spokesman said.

Federal prosecutors had been considering indicting Steinberg on charges that he traded on inside information on Dell Inc stock, sources close to the matter said on Thursday.  

Steinberg’s lawyer Barry Berke issued a statement to Reuters saying Steinberg had done “absolutely nothing wrong.”

“At all times, his trading decisions were based on detailed analysis as well as information that he understood had been properly obtained through the types of channels that institutional investors rely upon on a daily basis.”

Steinberg, 40, who was suspended from his post in October 2012, has been moving among several hotels in New York City in recent weeks, according to Reuters sources, as he wanted to avoid being arrested at his Upper East Side home where he lives with his wife and two children.

An SAC Capital spokesman had no immediate comment on the arrest.

Earlier this month, SAC Capital agreed to pay a $14 million settlement for improper trading in Dell in which a former trader who reported to Steinberg had been involved.

http://www.reuters.com/article/2013/03/29/sac-steinberg-insidertrading-idUSL2N0CL09020130329

One thought on “SAC Capital portfolio manager Steinberg arrested in NY-FBI

Join the Conversation

Your email address will not be published. Required fields are marked *


*