This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

FBI Arrests SAC Portfolio Manager

"Mr. Steinberg was at the center of an elite criminal club, where cheating and corruption were rewarded," he said. "Research was nothing more than well-timed tips from an extensive network of well-sourced analysts."

At least four other people associated with the Stamford, Conn.-based firm have been arrested over a period of about four years.

The arrest of Steinberg and the January arrest of a former hedge fund portfolio manager for an affiliate of Cohen's firm have increased speculation that the government is taking a hard look at the practices of the wealthy hedge fund owner.

In the January case, Cohen is repeatedly referenced in court papers as a "Hedge Fund Owner." He has not been charged, and SAC spokesman Jonathan Gasthalter has said the company and Cohen are cooperating with the inquiry and "are confident that they have acted appropriately."

On Friday, Steinberg was charged with conspiracy to commit securities fraud and four counts of securities fraud, accused of using inside information as he made trades involving Dell Inc. (DELL) and Nvidia Corp. (NVDA) securities. If convicted, he could face up to 85 years in prison.

Prosecutors said he made more than $1.4 million illegally in connection with trades involving Dell and Nvidia in 2008 and 2009. In a civil case filed Friday by the Securities and Exchange Commission, the agency said Steinberg's trades resulted in more than $6 million in illegal profits or avoided losses for the company.

"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 S. Canellos, acting director of the SEC's Division of Enforcement.

The SEC said Steinberg used inside information to trade securities of Dell and Nvidia in advance of at least four quarterly earnings announcements by the companies.


Associated Press Writer Tom Hays contributed to this report.
Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%
TSLA $231.61 0.00%
YHOO $32.94 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs