In another sign of the government's intense focus on illicit trading on Wall Street, the FBI early Friday arrested a longtime SAC Capital Advisors portfolio manager on insider-trading charges.
Federal agents took Michael Steinberg into custody at his residence on Manhattan's Upper East Side, an FBI spokesman said. More information about the charges was to be released later in the day.
Steinberg, 40, who has worked at the firm since 1997, would reportedly be the most senior of the hedge fund's employees to face charges in the government's wide-ranging investigation into insider trading.
A portfolio manager overseeing trades in technology, media and telecommunications stocks at SAC Capital's affiliate, Sigma Capital Management, Steinberg was put on leave in September, according to a source familiar with the matter.
Barry Berke, Steinberg's attorney, said his client "did absolutely nothing wrong."
“At all times, his trading decisions were based on detailed analysis as well as information that he understood had been properly obtained through the types of channels that institutional investors rely upon on a daily basis,” Berke said in an emailed statement Friday morning.