Michael Steinberg, portfolio manager at SAC was charged with insider trading by US prosecutors. He is the most senior Steven A. Cohen Capital Advisor's executive to be indicted in the probe.
He was arrested by FBI agents in his Park Avenue home in New York and pleaded not guilty to securities fraud and conspiracy to commit securities fraud at his arraignment.
His indictment has five counts from activities stemming from the use of inside information on trading shares of Dell Inc, the computer maker and Nvidia Corp, the chipmaker. The information utilized generated US$1.4 million in illegal profits for SAC Capital Advisors, Cohen's US$15 billion hedge fund.
There was also a related civil complaint against Steinberg filed by the US Securities and Exchange Commission, as he was able to generate US$6.4 million in profits and avoided losses for the fund.
In statement from Steinberg coursed through his lawyer, Barry Berke, who claims his client had done 'absolutely nothing wrong' as the 'trading decisions were based on detailed analysis.'
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