SAC hedge fund manager convicted of insider trading by New York court
Michael Steinberg, a top portfolio manager at Steven Cohen's SAC Capital Advisors hedge fund, has been found guilty of trading on insider information.
Michael Steinberg, a top portfolio manager at Steven Cohen's SAC Capital Advisors hedge fund, has been found guilty of trading on insider information.
A federal jury in Manhattan found Steinberg, 41, guilty on Wednesday of all five counts of conspiracy and securities fraud that he faced. Prosecutors said he traded on confidential information that was passed to him by a fellow employee, who later admitted to swapping illegal tips with friends at other firms.
The verdict, delivered in the fifth week of his trial, was the latest victory for federal prosecutors in New York in their four-year crackdown on Wall Street insider trading that has resulted in the conviction of 77 people and no trial losses.
Steinberg closed his eyes and put his head back when the first guilty finding was read. Friends and family sitting behind him gasped and held each other, with some covering their mouths and others crying.
Steinberg now stands convicted of federal crimes and [may lose] his liberty
The verdict, reached after a day and a half of deliberations, was delayed slightly when Steinberg fainted as it was about to be read. Jurors left the courtroom while he received medical attention and then returned.
Steinberg will be sentenced on April 25, the judge said. A spokesman for Steinberg said he would not have any comment on the case.