Bloomberg News

SAC Manager Steinberg Asks to Question Witnesses in SEC Case (1)

August 05, 2013

SAC Capital Advisors LP portfolio manager Michael Steinberg, who faces a criminal insider-trading trial in November, wants to question witnesses in a related civil lawsuit by the U.S. Securities and Exchange Commission.

Steinberg is defending both a criminal case brought by the U.S. Attorney in New York and a civil lawsuit by the SEC. In a court filing today in the SEC case, Steinberg asked a judge for permission to question witnesses and review documents. Gaining access to witnesses and evidence in the SEC’s case may help Steinberg defend himself against criminal charges.

“The U.S. Attorney’s Office and the SEC chose to simultaneously charge Mr. Steinberg with serious criminal and civil violations of the federal securities law,” his lawyer, Barry Berke, said in a filing today in the SEC’s lawsuit.

Steinberg, a long-serving SAC portfolio manager, is accused of trading in shares of Dell Inc. (DELL:US) and Nvidia Corp. (NVDA:US) based on illegal inside tips. He denies wrongdoing.

Prosecutors previously asked U.S. District Judge Harold Baer in Manhattan, who is presiding over the SEC suit, to halt proceedings in that case until after the criminal trial is concluded.

Lawyers for Steinberg, whose conspiracy and securities fraud trial is scheduled for Nov. 18, said they want to question certain witnesses under oath. The witnesses include individuals who have testified for the government at other insider-trading trials and current and former employees of Dell and Nvidia.

Steinberg did not ask to question former SAC analyst Jon Horvath, who is cooperating with prosecutors and who allegedly leaked him the tips.

The criminal case is U.S. v. Steinberg, 12-cr-00121, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW

Companies Mentioned

  • NVDA
    (NVIDIA Corp)
    • $20.59 USD
    • 0.02
    • 0.1%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus