SAC Capital Advisors money manager Michael Steinberg lost a bid to delay his insider-trading case, leaving him to face a jury next week in the first of two upcoming trials tied to the hedge fund run by Steven A. Cohen.
A judge declined to immediately accept the plea, saying she wanted to review documents in the case. Steinberg, 41, had argued that publicity surrounding the U.S. probe of SAC, and the record $1.8bn plea deal, would compromise his right to a fair trial in the same courthouse.
'Even assuming that the public is forgetful enough to be affected by a three-month delay, there is a strong likelihood that this and related cases will still be in the news three months from now', U.S. District Judge Richard Sullivan said yesterday, rejecting the request.
Steinberg’s trial is to be followed in January by that of former SAC fund manager Mathew Martoma, also charged with insider trading. U.S. prosecutors have said that, even with the guilty plea by SAC, the probe of individuals tied to the fund, including Cohen, continues. Trading by SAC employees in Gymboree, a children’s-apparel maker, is among the subjects of the investigation, a person familiar with the matter said.
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