Thursday, December 6, 2012

Ex-SAC Steinberg Is Unindicted Co-Conspirator




According to Bloomberg SAC Capital Advisors LP fund manager Michael Steinberg was described by a federal prosecutor as an unindicted co-conspirator in the insider-trading scheme that involved his former analyst....

Assistant U.S. Attorney Antonia Apps in Manhattan made the allegation yesterday at a hearing outside the jury’s presence at the trial of Todd Newman, a former portfolio manager at Stamford, Connecticut-based Diamondback Capital Management LLC, and Anthony Chiasson, co-founder of Level Global Investors LP. The U.S. says Newman and Chiasson made trades based on illegal tips obtained from company insiders and provided by analysts who worked for them.

Apps told U.S. District Judge Richard Sullivan the government was seeking to show jurors e-mails involving Steinberg when Newman’s lawyer objected, arguing that prosecutors failed to prove that Steinberg was a member of the conspiracy or show any evidence proving that Steinberg knew that information he had received about Dell  wasn’t public.....

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