SAC Capital Advisors’ Michael Steinberg, convicted of insider trading in December, should be sentenced to no more than two years in prison, less than half the sentence recommended by the court’s probation department, his lawyers said.
Bloomberg News reports that Steinberg deserves leniency because he was tried 'as a remote tipee, four levels removed from the insider tippers', didn’t initiate the insider-trading conspiracy and didn’t know about or authorize any payments for insider information, said Barry Berke, his attorney, in a filing in federal court in Manhattan yesterday.
Steinberg was SAC’s longest-serving manager to be convicted of insider trading. A jury found him guilty of using illegal tips on technology stocks provided by his former securities analyst, Jon Horvath, to reap more than $1.4m in illicit profit. The court’s probation department recommended a sentence of between 4 years and 3 months and 5 years and 3 months, Berke said in the filing.
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