SAC Capital fund manager Michael Steinberg has been arrested at his New York home by FBI agents as the federal government’s wide-ranging probe of insider trading at the firm got one step closer to founder Steven A. Cohen.
Bloomberg reports that Steinberg, 40, worked at SAC’s Sigma Capital Management unit and was one of 15 portfolio managers handling technology, media and telecommunications stocks before he was placed on leave in September, said a person with knowledge of the matter.
Steinberg's lawyer, Barry Berke, said he was arrested on insider trading charges and will appear in New York federal court later Friday.
U.S. District Judge Richard Sullivan in Manhattan in December ruled that Steinberg was an uncharged co-conspirator in a $72m scheme that also involved Level Global Investors LP co-founder Anthony Chiasson, ex-Diamondback Capital Management LLC portfolio manager Todd Newman and analysts who obtained and swapped illegal tips about technology companies.
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image: © Lisamarie Babik