SAC Manager Steinberg Seeks to Question Some Witnesses
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.
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).
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