Prosecutors: SAC questioned analyst over insider trading


SAC Capital Advisors compliance officers and the firm’s outside lawyers questioned Jon Horvath in 2011, when he was an analyst at the firm, about insider trading with expert networker John Kinnucan and the firm Primary Global Research, U.S. prosecutors said.

Bloomberg reports that while Horvath didn’t make any false statements, he was 'not forthcoming' about his involvement in any insider-trading scheme during two separate sessions with SAC compliance officers and Martin Klotz, an outside attorney for the fund, prosecutors said in a letter to the court.

Horvath, who worked at SAC’s Sigma Capital Management unit, was first charged with being part of an insider trading ring by federal prosecutors in the office of Manhattan U.S. Attorney Preet Bharara in February 2012. Horvath pleaded guilty in September 2012 and agreed to cooperate with the U.S. He will be a witness against his former boss, SAC fund manager Michael Steinberg, who goes on trial next week.

Kinnucan, founder of Broadband Research, pleaded guilty in July 2012 to obstruction of justice and passing illegal tips to hedge-fund clients about technology companies.

He pleaded more than a year after sending an e-mail to his clients announcing that he’d rejected a Federal Bureau of Investigation request to plead guilty and secretly record their calls.

To access the complete Bloomberg article hit the link below:

SAC Asks Analyst Horvath About Inside Trading, U.S. Says

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