SAC’s Steinberg Deserves at Least 5 Years, U.S. SaysSophia Pearson
SAC Capital Advisors LP’s Michael Steinberg, convicted of insider trading in December, should be sentenced to more than five years in prison when he goes before a judge later this week, the U.S. said.
The government also seeks forfeiture of about $365,000. Steinberg’s lawyers this month said his sentence shouldn’t exceed two years. Federal sentencing guidelines call for 5 1/4 years to 6 1/2 years, prosecutors said in a court filing May 9.
“Steinberg benefited from a much more wide-ranging conspiracy in which multiple analysts pursued multiple sources,” the government said, rejecting Steinberg’s arguments that he’s the least culpable in the insider-trading scheme.
Steinberg is among eight current and former SAC employees convicted in a government probe of insider trading at the hedge fund company. He is SAC’s longest-serving manager to be convicted, and is scheduled to be sentenced May 16 in Manhattan federal court.
A jury found him guilty of using illegal tips on technology stocks provided by his former securities analyst, Jon Horvath, to reap more than $1.4 million in illicit profit.
Horvath faces sentencing in September, according to court records. Matthew Martoma, a former SAC fund manager, is scheduled to be sentenced June 10.
Prosecutors called Martoma’s scheme, which netted SAC Capital $275 million, the biggest single insider-trading event in U.S. history.
Last month, a federal judge approved SAC’s $1.8 billion settlement of the U.S. probe. SAC Capital, which changed its name to Point72 Asset Management LP, pleaded guilty to reaping hundreds of millions of dollars in illegal profits and fostering a culture of criminality that encouraged insider trading by its employees.
The case is U.S. v. Steinberg, 12-cr-00121, U.S. District Court, Southern District of New York (Manhattan). The Martoma case is U.S. v. Martoma, 12-cr-00973, U.S. District Court, Southern District of New York (Manhattan)