More On Legal & Compliancefrom The Advisor's Professional Library
- Meeting and Exceeding Clients and Regulators’ Expectations Although it can be difficult, there are ways for RIAs to meet or exceed client expectations, increase customer satisfaction, and help firms retain current clients and attract new ones.
- How to Avoid Sabotaging Your Compliance Exam There is much more to compliance examination survival than knowing all of the rules. It helps to understand why the rules were put in placeand to recognize that examiners are not the enemy.
NEW YORK (AP) — A portfolio manager for one of the nation's largest hedge funds who was accused by the government of cheating to boost sagging results in 2007 was convicted on Wednesday of insider trading charges.
The verdict against Michael Steinberg in Manhattan federal court was announced only after he was checked by a nurse because he had slumped in his seat and appeared to faint when the jury first entered the courtroom.
U.S. District Judge Richard J. Sullivan, who set sentencing for April 25, told jurors Steinberg had a "bit of a dizzy spell" but that he had been checked by the nurse and Steinberg's brother, who's a doctor, and that everyone including the 41-year-old defendant agreed he was fit to receive the verdict. When the first of five guilty verdicts was read aloud, Steinberg's head dropped back and he looked up.
"Disappointing verdict, I know," the judge told Steinberg after jurors left the courtroom as he again offered medical assistance if the defendant required it. Steinberg did not.
The drama came amid a case that was the first to result from the government's focus on insider trading at SAC Capital Advisors.
The company, based in Stamford, Conn., was founded by billionaire businessman Steven A. Cohen, who hasn't been charged criminally but faces civil claims. This month it agreed to pay a record $1.8 billion to settle civil and criminal insider trading charges.
A spokesman for Steinberg's defense said lawyers wouldn't immediately comment on the verdict.
Lawyer Barry Berke has said an analyst who worked for Steinberg framed him to avoid going to prison himself. After the verdict was announced, Steinberg shook his head as he spoke with his lawyer and later embraced family members.
Prosecutors during the monthlong trial said Steinberg made illegal trades between 2007 and 2009 after receiving insider information from an analyst, Jon Horvath, of San Francisco. Horvath pleaded guilty last year to insider trading charges and agreed to testify against Steinberg as part of his plea deal.