Michael Steinberg, a portfolio manager of Sigma Capital Management, a division of the Connecticut-based hedge fund SAC Capital, was this week found guilty today in Manhattan federal court for his participation in an insider trading scheme.

Michael Steinberg, a portfolio manager of Sigma Capital
Management, which is a division of Connecticut-based hedge fund SAC Capital, was this week
found guilty in Manhattan
federal court for his participation in an insider trading scheme.

Steinberg allegedly traded in the securities of two publicly-traded
technology companies - Dell and NVIDIA Corporation - based on inside information
that he obtained from his research analyst Jon Horvath, who had acquired the
information from analysts at various investment firms.

Steinberg’s trades in Dell and NVIDIA, carried out after
obtaining inside information about the firm’s quarterly earnings in 2008 and
2009 respectively, together resulted in some $1.9 million in illegal profits
for his hedge fund.

The Federal Bureau of Investigation said in a statement that
Horvath previously pled guilty to insider trading, as did the following analysts involved in the case: Jesse
Tortora, formerly of Diamondback Capital; Spyridon Adondakis, formerly of Level
Global; Danny Kuo, formerly of Whittier Trust; and Sandeep Goyal, formerly of
Neuberger Berman. Steinberg was found guilty of conspiracy to commit securities
fraud and four counts of securities fraud.

Steinberg is scheduled to be sentenced on April 25, 2014. The start of his trial started two weeks after Steven Cohen’s hedge fund agreed to pay a total fine of $1.8
billion to settle the long-running insider trading inquiry.

The settlement, reached at the start of November, brought to an end a
seven-year-long investigation by US prosecutors and fuels months of speculation
as regards whether Cohen might turn the remainder of his business into a family
office-type structure (view a related article here).