NEW YORK (AP) — A senior portfolio manager for one of the nation’s largest hedge funds was arrested Friday, accused of making $1.4 million illegally in a widening insider trading probe involving an investment company founded by billionaire businessman Steven A. Cohen.
Michael Steinberg, 41, was arrested at 6 a.m. at his Manhattan home on insider trading charges lodged in an indictment unsealed in U.S. District Court in New York City. The senior portfolio manager at SAC Capital Advisors pleaded not guilty in court Friday.
His attorney, Barry Berke, said in a statement that Steinberg “did absolutely nothing wrong.” He said Steinberg’s trading decisions were based on detailed analysis along with other information he properly obtained.
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“Caught in the crossfire of aggressive investigations of others, there is no basis for even the slightest blemish on his spotless reputation,” he said.
In a statement, SAC Capital said Steinberg “has conducted himself professionally and ethically during his long tenure at the firm. We believe him to be a man of integrity.”