New York (HedgeCo.Net) – A portfolio manager at Steven A. Cohen’s hedge fund, SAC Capital Advisors, was granted a chance to appeal his conviction for conspiracy and securities fraud charges in an insider trading scheme, USA Today reports.
The Judge allowed the former finance manager for SAC’s Steven Cohen to remain free pending a final ruling on his appeal.
Michael Steinberg was sentenced in May, 2014, to three and a half years in prison for his involvement in an insider trading scheme. Steinberg was also ordered to pay a $2 million fine and forfeit over $365K in illegal profits.
USA Today reports: “The U.S. Court of Appeals for the Second Circuit lifted a legal stay that had delayed Steinberg’s appeal pending final disposition of two other insider-trading cases that initially ended in convictions. After overturning those convictions in December — in a ruling that could make it harder for federal prosecutors to win convictions in insider trading cases — the appeals court on Friday denied Bharara’s petition for a rehearing. The rejection paved the way for the court’s one-page Monday order allowing Steinberg’s appeal to go forward.”
U.S. Attorney Preet Bharara said he will fight the appeal. “As alleged, 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.” Bharara said back in April, “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.”
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