A Former SAC Analyst Told The Feds He Was Pressured To Get Inside Information
According to the WSJ, former SAC Capital analyst Jon Horvath says he was pressured by his superiors at the firm to get inside information on technology stocks.
Obviously, this isn't going to help SAC Capital's billionaire founder Steve Cohen. At the end of last year he was mentioned as 'Portfolio Manager A' in the insider trading complaint against former SAC Capital portfolio manager Mathew Martoma. In short, that means Cohen's not being accused of anything, but the Feds believe he is close to the matter.
Horvath's testimony will be used against Cohen and former SAC portfolio manager Michael Steinberg, says the WSJ. They've been trying to connect Cohen to six other insider trading convictions of former or current SAC traders since 2009.
Neither Cohen nor Steinberg have been accused of wrongdoing.
"Michael Steinberg did absolutely nothing wrong," said his lawyer, Barry H. Berke. "His trading decisions were based on detailed analysis" and information "he understood had been properly obtained through the types of channels that institutional investors rely upon on a daily basis."
SAC put Mr. Steinberg, 40 years old, on paid leave last fall, declining to specify the reasons for the move. Neither he nor Mr. Cohen has been accused of any wrongdoing.
An SAC spokesman declined to comment on Mr. Steinberg. The spokesman has said Mr. Cohen and the hedge-fund firm acted appropriately and will cooperate with the investigation.
Meanwhile, money is pouring out of the $14 billion fund. February 15th is the deadline for clients to turn in first quarter redemptions and some big names already have.