Former SAC Capital Advisors portfolio manager Michael Steinberg has been convicted of insider trading in a U.S. victory that may increase pressure on his accused one-time colleague, Mathew Martoma, to cooperate in the probe of founder Steven A. Cohen.
Bloomberg News reports that Steinberg, 41, was convicted Wednesday of conspiracy and securities fraud after a five-week trial in Manhattan federal court. A jury, after deliberating for little more than one day, found him guilty of using illegal tips on technology stocks provided by his former securities analyst, Jon Horvath, to reap more than $1.4m in illicit profits.
U.S. District Judge Richard Sullivan, who presided over the trial and set April 25th for sentencing, has imposed some of the longest terms on convicted insider traders in the Manhattan courthouse. In 2011, he gave 10 years and four months to Zvi Goffer, an ex-Galleon Group trader who was convicted of leading a scheme in which prosecutors said he made more than $10m.
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