More legal trouble ensues for Steve Cohen’s hedge fund firm SAC Capital Advisors.
Reuters reported that U.S. prosecutors charged SAC portfolio manager Michael Steinberg with insider trading on Friday for allegedly making over $1.4 million for the hedge fund trading on shares of computer maker Dell, Inc. and chipmaker Nvidia Corp. Steinberg pleaded not guilty to the five-count indictment charges.
The article also said that in a related civil complaint against Steinberg, the Securities and Exchange Commission accused the portfolio manager of generating $6.4 million in profits and avoided losses for SAC.
eVestment previously reported that SAC shelled out approximately $615 million to settle insider trading charges for its affiliates, CR Intrinsic Investors and Sigma Capital Management. The SEC charged former CR Intrinsic portfolio manager Mathew Martoma last November of allegedly making over $250 million for the firm using insider information he received regarding a Alzheimer disease drug trial.
Based in Stamford, Conn., SAC manages about $15 billion in assets.