A lawyer for SAC Capital Advisors LP money manager Michael Steinberg said evidence about the Galleon Group LLC insider-trading probe should be excluded from his trial, which is to start next month, arguing there is no “material” link between the two cases.
Barry Berke, the attorney, also said prosecutors shouldn’t be permitted to show jurors six sets of PowerPoint slides excerpted from “insider trading and compliance presentations” at SAC from 2006 to 2009, arguing that they are prejudicial.
Berke said there isn’t any evidence his client attended the compliance sessions and that prosecutors are trying to show Steinberg’s state of mind during this period.
They also should be excluded because they refer to the U.S. Securities and Exchange Commission’s “current enforcement environment,” and the presentations occurred in September 2009, after the last date of Steinberg’s alleged insider trading, Aug. 27, 2009, the lawyer argued.
Berke called statements in the presentations “often oversimplified or incorrect” on the law of insider trading.
The defense lawyer filed the court papers Oct. 25 in the court of U.S. District Judge Richard Sullivan in Manhattan.
Steinberg, whose conspiracy and securities fraud trial is scheduled for Nov. 18 before Sullivan, is accused of trading on inside tips on Dell Inc. (DELL) and Nvidia Corp. (NVDA) provided by his analyst, Jon Horvath. The scheme generated $1.4 million in profits, prosecutors say.
Steinberg, who denies wrongdoing, is one of eight current and former SAC employees to be charged with insider trading and is the longest-serving to face charges.
The hedge fund firm was indicted by the U.S. on July 25. Prosecutors said SAC allowed employees to engage in insider trades that generated hundreds of millions of dollars over a decade.
SAC, based in Stamford, Connecticut, pleaded not guilty.
The criminal case is U.S. v. Steinberg, 12-cr-00121, U.S. District Court, Southern District of New York (Manhattan).
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