US prosecutors zero in on SAC Capital insider Michael Steinberg
Steinberg, 40, a technology portfolio manager with SAC Capital's Sigma Capital division, previously had been named by prosecutors as an unindicted co-conspirator in a criminal prosecution involving two other recently convicted hedge fund traders, Todd Newman and Anthony Chiasson, who had also traded Dell shares.
It is not known what possible charges prosecutors are contemplating bringing against Steinberg. During the Newman and Chiasson trial late last year, prosecutors had introduced emails that showed Steinberg and his colleagues discussing Dell's earnings performance before they were publicly released.
Steinberg's lawyer, Barry Berke, said his client "did absolutely nothing wrong." An SAC Capital spokesman declined to comment. Dell has also declined to comment on the case.
The sources said federal authorities continue to interview witnesses and expect a decision on whether to file criminal charges against Steinberg within several weeks, though they noted the situation and timing are fluid.
If Steinberg is charged by federal authorities, he will be one of the most senior people at Steven A. Cohen's SAC Capital to become embroiled in the government's investigation of insider trading in the $2 trillion hedge fund industry.
Cohen's $14 billion hedge fund has been under investigation by US authorities for at least six years. Cohen himself has not been charged, nor has he been accused of any wrongdoing.
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