Business, Economics and Jobs

SAC Capital: FBI arrest Michael Steinberg, hedge fund manager


The New York Stock Exchange Dec. 10, 2012 in New York City, New York.


Spencer Platt

US prosecutors charged SAC Capital Advisors' veteran hedge fund manager Michael Steinberg with insider trading involving two technology stocks on Friday.

Steinberg is the company's most senior employee and the eighth to be indicted in the government's long-running probe of the $15 billion hedge fund run by Steven Cohen, Reuters reported.

Steinberg, who has been with the fund for 17 years, was arrested at 6:00 a.m.. this morning at his Park Avenue home, according to the FBI.

According to the Financial Times, he is charged with "charged with trading in advance of Dell and Nvidia earnings."

Steinberg also faces a civil complaint. The Securities and Exchange Commission said the insider information resulted in $6.4 million in profits and help the fund avoid losses.

Barry Berke, Steinberg's lawyer, said in a statement that his client had done "absolutely nothing wrong."

The charges come just two weeks after SAC's Steven Cohen settled a $616 million agreement with the SEC and news that Cohen purchased a Picasso for a staggering $155 million.