The U.S. has said that according to a report by Bloomberg News, SAC Capital Advisors LP’s Michael Steinberg, who was convicted of insider trading in December, should be sentenced to more than five years in prison when he goes before a judge later this week. Michael Steinberg, 41, was arrested at 6 a.m. at his Manhattan home on insider trading charges lodged in an indictment unsealed in U.S. District Court in New York City. Formerly known as S.A.C. Capital Advisors, L.P., Point72 Asset Management, is a group of hedge funds founded by Steven A. Cohen in 1992.
According to the U.S. government, “Steinberg benefited from a much more wide-ranging conspiracy in which multiple analysts pursued multiple sources,” they said rejecting Michael Steinberg’s arguments that he’s the least culpable in the insider-trading scheme.
In a 41-page filing, U.S. attorneys have cited various communications between Michael Steinberg and analyst Jon Horvath, who is accused of passing him various nonpublic earnings information on Dell Inc., which Steinberg used to make $1.47 million in illegal profits. According to Law 360, “he was keenly aware that his conduct was illegal.”
According to Money News, Michael Steinberg was SAC’s longest serving manager to be convicted of insider trading. A jury found him guilty of using illegal tips on technology stocks provided by his former securities analyst, Jon Horvath, to reap more than $1.4 million in illicit profit.
U.S. Attorney Preet Bharara said in a statement according to an article on breitbart.com, that Michael Steinberg “was another Wall Street insider who fed off a corrupt grapevine of proprietary and confidential information cultivated by other professionals who made their own rules to make money. With lightning speed in at least one case, Mr. Steinberg seized on the opportunity to cash in and tried to keep his crime quiet, as charged in the indictment.” The government continues its crackdown on Wall Street insiders with corrupt practices.
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