Frank A. Rubino , ESQ.

FEDERAL AND INTERNATIONAL CRIMINAL DEFENSE

Coral Gables: 305-858-5300
Houston: 713-574-7716
Toll-Free: 1-866-718-3994
Main Menu
Practice Area

Hedge Fund Executive Faces Insider Trading Charges

SAC Capital is a hedge fund giant based in Connecticut. The company has been the source of a growing investigation into securities fraud based on insider trading. A 40-year-old portfolio manager was arrested this week and has been charged with conspiracy and securities fraud. The Federal Bureau of Investigation has alleged that the man participated in an "elite criminal club" wherein a network of analysts funneled insider information and private financial data to SAC professionals.

The federal investigation has led to allegations against at least nine people who work or worked for SAC Capital. Four of those people have pleaded guilty in federal court, including an analyst who once worked for the portfolio manager arrested this week. It is likely that information obtained from this analyst was vital in the investigation leading to insider trading charges. The portfolio manager has been on leave from SAC since September and was arrested shortly after returning from vacation in Florida.

SAC attempted to resolve two cases of insider trading last year by agreeing to pay $616 million to U.S. authorities. The judge assigned to the case rejected the bulk of that agreement this week due to SAC's refusal to admit wrongdoing in connection with $602 million of the total settlement. The status of the civil case against SAC is still unresolved.

The founder of the hedge fund made headlines this week by going on what was termed as a "massive spending spree" when he purchased a Picasso painting for $155 million. His art collection is valued at more than $1 billion dollars. He also purchased a large home on the ocean in the Hamptons. The founder does not currently face any charges connected to the insider trading allegations against several of the hedge fund employees.

Source: The Guardian, "SAC hedge fund executive Michael Steinberg charged over insider trading," by Dominic Rushe, 29 March 2013

No Comments

Leave a comment
Comment Information

Coral Gables Office

Frank A. Rubino, Esq.
550 Biltmore Way Suite 780
Coral Gables, FL 33134

Local: 305-858-5300
Toll Free: 1-866-718-3994
Coral Gables Law Office Map
Email the Firm

Houston Office

Frank A. Rubino, Esq.
712 Main St
Houston, TX 77002

Local: 713-574-7716
Toll Free: 1-866-718-3994
Map and Directions
Email the Firm