SAC Capital employee gets 3 1/2 years in prison

Photo Courtesy: MGNonline

NEW YORK, NY (AP) — A portfolio manager for one of the nation’s largest hedge funds has been sentenced to 3 1/2 years in prison for his insider trading conviction.

Federal Judge Richard Sullivan in Manhattan cited Michael Steinberg’s overall good character at sentencing Friday.

Steinberg was convicted in December of five conspiracy and securities fraud charges. He did not speak at sentencing because of a pending appeal.

The Manhattan resident was convicted of trading illegally in two technology stocks between 2007 and 2009. At the time, he worked for the Stamford, Connecticut-based SAC Capital Advisors.

The company was founded by billionaire businessman Steven A. Cohen. Cohen has not been charged criminally, but he faces civil claims.

SAC Capital agreed last year to pay a record $1.8 billion to settle civil and criminal insider trading charges.

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