SAC Capital manager's insider trading trial starts
NEW YORK (AP) — A prosecutor has told jurors at a New York trial that a portfolio manager for one of the nation's largest hedge funds used insider trading to boost sagging results in 2007.
The trial of Michael Steinberg is the first to result from the government's focus on insider trading at SAC Capital Advisors. The Stamford, Conn.-based company was founded by billionaire businessman Steven A. Cohen. He has not been charged criminally, but faces civil claims. SAC Capital earlier this month agreed to pay a record $1.8 billion to settle civil and criminal insider trading charges.
Federal prosecutor Antonia Apps said Wednesday that Steinberg made illegal trades between 2007 and 2009. Defense lawyer Barry Berke said an analyst who worked for Steinberg framed his client to avoid prison himself.