New Sheriff of Wall Street is Racking Up Insider Trading Convictions

March 29, 2013 – In The News
Los Angeles Times

Top federal prosecutor, Preet Bharara, nabbed a big portfolio manager at one of America’s biggest hedge funds. SAC Capital Advisor’s Michael Steinberg was led out of his Park Avenue apartment in handcuffs early Friday morning. It’s a major arrest in a fund that has long drawn government scrutiny.

In his three years in office, Bharara has claimed 71 insider trading convictions, bringing Wall Street wrongdoers to justice.

His latest push appears to center around SAC Capital, run by billionaire investor Steven A. Cohen.

Bharara’s office has brought charges against two of Cohen’s portfolio managers. In addition to Steinberg, Bharara filed charges in November against Mathew Martoma, a former portfolio managers at a SAC Capital affiliate, CR Intrinsic Investors.

“This is another rung in the ladder to get to who they really want,” said Ernest Badway, a former Securities and Exchange Commission enforcement attorney. “It’s obvious to even a causal legal observer that Bharara and his prosecutors are building a case against Steve Cohen—or at least attempting to. Whether they’ll be successful is a different story.

Cohen has not yet been accused of any wrongdoing. His spokesman has repeatedly said Cohen has always acted appropriately.