SAC’s Steinberg Found Guilty of Insider Trading

Your next video will start in

Recommended Videos

  • Info

  • Comments


Dec. 18 (Bloomberg) – Bloomberg’s Su Keenan reports on the verdict of SAC’s Michael Steinberg who was found guilty on all five counts related to insider trading. She speaks to Adam Johnson on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Michael steinberg, the biggest defended yet, portrayed as a right-hand man to stephen s cohen has been found by a jury of nine women and three men guilty on all five counts related to insider trading.

This has to do with tech stocks in 2008 and the government's case that he received legal tips from an analyst that worked directly below him.

The government said he was part of a club of friends that share the legal tips between different funds.

We should point out that his attorney tried to prove that he was trying to raise his profile at the firm and that he had no credibility.

He had pled guilty to insider trading and was a corroborating witnesses, one of the key witnesses of 13. burke put on no witnesses and try to prove the government's case would collapse.

As the jury filed in, steinberg fainted.

This is something that is rarely seen.

The judge sent the jury back out.

She said she would call an ambulance.

The attorney said he was ok, but had perhaps experienced a seizure.

They spoke to a former -- i spoke to a former prosecutor who explained it could be overwhelming.

Everything in life stand before you, and this prosecutor, he pointed out, has a track record of 81-0. economic had 82-0 in terms of success in -- you can make that 82-zero in terms of success in prosecuting these cases.

When can we find out about the sentencing?

We will be finding out shortly.

What is significant here is this is a man who has a wife and children and could spend up to 20 years in jail.

That is part of the pressure that is on steinberg.

We will hear about that shortly.

Incredible pressure.

Steve cortes, barry ritholtz, what you make of this?

From a broader perspective, i do not think it is something to be proud of that a federal prosecutor is 82-0. that kind of record belongs in north korea or iran.

But he is doing his job.

My point is federal prosecutors are overzealous and federal laws are so broad that they could ensnare most any sophisticated businessman if the government puts his guns -- it's guns on them.

You do not believe it is insider trading?

I do not know the specifics of this case, but in terms of steve cohen, they have spent 10 years investigating him and it has turned into a one witchhunt.

This was -- into a witchhunt.

As was the only guy they could get.

You wonder what it means going forward.

Understand the sac model.

Cohen is trading about half of the companies money, and then he has dozens of portfolio managers that are under tremendous pressure to perform.

You have a bad month there, and you are out.

You are out with a bad month.

[closing bell]

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change