Legal

Former SAC Portfolio Manager Sentenced To 42 Months In Prison

Eliane Chavagnon, Editor Americas, 19 May 2014

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Michael Steinberg, a portfolio manager of Sigma Capital Management, a division of Connecticut-based hedge fund SAC Capital now operating as Point72 Asset Management, was last week sentenced in Manhattan federal court to 42 months in prison for crimes stemming from his involvement in an insider trading scheme.

Michael Steinberg, a portfolio manager of Sigma Capital Management, a division of Connecticut-based hedge fund SAC Capital now operating as Point72 Asset Management, was last week sentenced in Manhattan federal court to 42 months in prison for crimes stemming from his involvement in an insider trading scheme.

Steinberg was found guilty in December last year of trading on information from company insiders at Dell and NVIDIA, reaping nearly $2 million in illegal profits. See more here.

Steinberg’s trades were based on inside information that he obtained from his research analyst Jon Horvath, who had acquired the information from analysts at various investment firms.

Horvath previously pled guilty to insider trading, as did analysts Jesse Tortora, formerly of Diamondback Capital; Spyridon Adondakis, formerly of Level Global; Danny Kuo, formerly of Whittier Trust; and Sandeep Goyal, formerly of Neuberger Berman.

In addition to the prison term, Steinberg was sentenced to three years of supervised release and was ordered to pay $365,142.30 in forfeiture and a $2 million fine.

Last month, Steven Cohen’s SAC group of companies were sentenced by US District Judge Laura Swain, who approved the guilty plea entered by the defendants on 8 November, 2013. The sentencing brought to an end a seven-year-long investigation by US prosecutors.

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