Insider trading charges filed against portfolio manager at large hedge fund
A senior portfolio manager for one of the nation’s largest hedge funds was arrested today, accused of making $1.4 million illegally in a widening insider trading probe involving an investment company founded by billionaire businessman Steven A. Cohen.
Michael Steinberg, 41, was arrested at 6 o’clock this morning at his Manhattan home on insider trading charges lodged in an indictment unsealed in U.S. District Court in New York City. A senior portfolio manager at SAC Capital Advisors, he was scheduled to appear in court today.
His attorney, Barry Berke, said in a statement that Steinberg “did absolutely nothing wrong.” He said Steinberg’s trading decisions were based on detailed analysis along with other information he properly obtained.
“Caught in the crossfire of aggressive investigations of others, there is no basis for even the slightest blemish on his spotless reputation,” he said.
In a statement, SAC Capital said Steinberg “has conducted himself professionally and ethically during his long tenure at the firm. We believe him to be a man of integrity.”
U.S. Attorney Preet Bharara said in a statement that 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.”