Arab Today, arab today trader arrested in insider probe of hedge fund sac
Last Updated : GMT 21:56:28
Arab Today, arab today
Arab Today, arab today

Trader arrested in insider probe of hedge fund SAC

Arab Today, arab today

Arab Today, arab today Trader arrested in insider probe of hedge fund SAC

Washington - AFP

Federal Bureau of Investigation officials arrested a trader from SAC Capital for insider trading on Friday, in the latest push by authorities against the controversial hedge fund. Michael Steinberg, a portfolio manager at SAC affiliate Sigma Capital Management, faces criminal and civil charges of insider trading and securities fraud from the Department of Justice and the Securities and Exchange Commission. The charges said he traded on advance information of quarterly results of tech companies Dell and Nvidia, reaping millions in profits and avoided losses for an SAC fund. Steinberg's lawyer denied the charges, which came weeks after Sigma analyst Jon Horvath settled charges and Sigma itself agreed to pay $14 million in fines related to the same insider trading. The charges allege that Steinberg made profitable trades based on earnings-related tips from company insiders that were routed through a small network of hedge funds and analysts. Sigma gained more than $6 million in profits and avoided losses from the information, according to the SEC. "Steinberg essentially got an advance copy of Dell and Nvidia's quarterly earnings announcements, allowing him to trade on tomorrow's news today," said George Canellos, acting director of the SEC's Division of Enforcement. "As alleged, Mr. Steinberg was at the center of an elite criminal club, where cheating and corruption were rewarded," said FBI Assistant Director George Venizelos. "The law is clear for everyone including Mr. Steinberg. Trading on inside information is illegal." Steinberg's attorney Barry Berke told the Wall Street Journal Friday that his client "did absolutely nothing wrong." "His trading decisions were based on detailed analysis" and information that Steinberg "understood had been properly obtained through the types of channels that institutional investors rely upon on a daily basis." An SAC spokesman defended Steinberg. "Mike has conducted himself professionally and ethically during his long tenure at the firm," the spokesman said. "We believe him to be a man of integrity." The SEC indictment shows how advance information on Dell's gross margins in a particular quarter in mid-2008 was transmitted by an employee of Dell's investor relations department to an analyst for an asset management fund. That analyst relayed the information to Jesse Tortora, who worked at hedge fund Diamondback Capital Management, who in turn relayed it to Steinberg's colleague Horvath. Fourteen minutes after speaking with Tortora, Horvath spoke by telephone with Steinberg and about a minute later, Steinberg's fund began shorting Dell shares, the indictment said. By the end of the day, Steinberg's portfolio had acquired a net short position of more than 167,000 shares. In the Nvidia case, information that Nvidia's gross margins would be lower than market expectations came from an insider in Nvidia's finance department. That analyst passed the information through Tortora and Horvath, among others, and Steinberg was accused of being behind trades executed for Sigma funds ahead of the company's earnings announcement. Steinberg's arrest was the most recent incident in the long-running investigation into SAC, one of the leading names of the New York hedge fund community, and its founder billionaire Steven A. Cohen. In addition to the Sigma fine, on March 15 the SEC also hit SAC affiliate CR Intrinsic Investors with a record $602 million penalty to settle charges that it earned massive profits on confidential information involving the clinical trial of an Alzheimer's drug.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today trader arrested in insider probe of hedge fund sac Arab Today, arab today trader arrested in insider probe of hedge fund sac

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday