New York (HedgeCo.Net) – A portfolio manager at Steven A. Cohen’s hedge fund, SAC Capital Advisors, has been sentenced to three and a half years in prison for his alleged involvement in an insider trading scheme, TIME magazine reports.
“Michael Steinberg traded on information from company insiders at Dell and NVIDIA to reap nearly $2 million in illegal profits,” Manhattan U.S. Attorney Preet Bharara said in a statement emailed to TIME late Friday. “Today he has learned the steep cost of those transactions.”
Steinberg was also orderd to pay a $2 million fine and forfeit over $365K in illegal profits. Reuters reports that Steinberg was granted bail.
“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.” Manhattan U.S. Attorney Preet 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. As alleged, where once Mr. Steinberg answered only to his own rules, now he will have to answer to the rule of law, like so many others before him.”
FBI Assistant Director in Charge George Venizelos said, “Mr. Steinberg’s arrest is the latest in the FBI’s campaign to root out insider trading at hedge funds and expert networking firms, resulting in more than 70 arrests so far. As alleged, Mr. Steinberg was at the center of an elite criminal club, where cheating and corruption were rewarded. Research was nothing more than well-timed tips from an extensive network of well-sourced analysts. The law is clear for everyone, including Mr. Steinberg. Trading on inside information is illegal. The FBI will continue to police our markets and arrest anyone who violates the law.”
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