Remember when you heard about Steve Cohen of SAC Capital buying the world’s second most expensive piece of artwork for $155 million and then purchased a home in East Hampton for $60 million and you thought to yourself, “Wow, that guy has a lot of money.”
Well, one of his top analysts is in big trouble.
A senior member of SAC is making HUGE headlines all across America for being arrested on insider trading. Michael S. Steinberg was charged Friday with conspiracy to commit securities fraud and four counts of securities fraud. Authorities are alleging he made illegal trades in shares of Dell Inc. and Nvidia Corp. He faces 20 years in prison for each count.
The news has shaken up a lot of people in the Hamptons, as many SAC employees are known to summer out here.
WSJ reported, “Mr. Steinberg appeared at a brief hearing in Manhattan federal court, dressed in charcoal pants, a white shirt and black sweater, and was released on a $3 million bond secured by his home. He nodded in response to questions from the judge, pleading not guilty.
“Mr. Steinberg was at the center of an elite criminal club where cheating and corruption were rewarded,” said George Venizelos, FBI Assistant Director-In-Charge of the New York office. “Research was nothing more than well-timed tips from an extensive network of well-sourced analysts.”