Cohen unaware over source of dirty tips

Telephone

SAC Capital Advisors fund manager Michael Steinberg told the analyst who gave him inside tips on Dell that the fund’s founder, Steven A. Cohen, wasn’t aware they were obtained illegally.

Bloomberg reports that Steinberg concealed the true source of the tips, Jon Horvath, the former SAC analyst who worked for him, told jurors in the federal insider-trading trial in Manhattan.

Horvath said Steinberg told him at SAC’s Sigma Capital Management offices in Midtown Manhattan that he had told Cohen that the trading recommendations were based on 'industry contacts' and 'supply chain checks'.

'I was in Mike’s office and he said, ‘I just got off the phone with Steve and I was telling him about Dell', Horvath testified Monday. 'I kind of cringed, because I didn’t want to be part of this conversation. Mike said, ‘I told him you had a Dell supply-chain check.’'

Steinberg, 41, who is charged with conspiracy and four counts of securities fraud, is the first of eight current or former SAC employees charged by the U.S. to go to trial. He is accused by prosecutors in the office of Manhattan U.S. Attorney Preet Bharara of earning more than $1.4m in illegal profits in Dell and Nvidia by trading on tips Horvath got from a group of friends from 2007 to 2009.

To access the complete Bloomberg article hit the link below:

Cohen Didn't Know About Source of Dirty Tips: Analyst

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