The hedge-fund analysts vacationed together in the Hamptons, gambled in Las Vegas and adopted a creed that parodied the rules in the Brad Pitt film 'Fight Club'.
Having pleaded guilty to insider trading, four of the men are now set to be witnesses against SAC Capital Advisors fund manager Michael Steinberg. Ex-SAC analyst Jon Horvath could take the stand as early as Tuesday in Manhattan federal court against his former boss after ex-Diamondback Capital Management analyst Jesse Tortora concludes his testimony.
Steinberg’s trial is providing a rare glimpse into the workings at SAC, the Stamford, Connecticut-based hedge fund founded and owned by billionaire Steven Cohen. Bharara has called SAC 'a veritable magnet for market cheaters'. Cohen hasn’t been charged with a crime.
Tortora told Steinberg’s jury that his group had mockingly described a set of rules that riffed on the motto from the 1999 movie “Fight Club.”
'Rule number one about email list, there is no email list (fight club reference)', Tortora wrote in a March 2009 e-mail introducing a newcomer to the group. 'Rule number two, only data points can be sent, no sarcastic comments. Enjoy. Your perf(romance) will go up by 100% in 2009 and your boss will love you. Game theory ... look it up'.
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