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SAC Portfolio Manager Worries About “Media Storm”

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Michael Steinberg, SAC Capital Advisors LP fund manager, who worked at SAC's Sigma Capital Management unit.
Michael Steinberg, SAC Capital Advisors LP fund manager, who worked at SAC’s Sigma Capital Management unit.
SAC portfolio manager Michael Steinberg is worried that widespread press coverage of his insider trading case could cost him a fair trial.

Steinberg’s lawyer, Barry Berke, filed a letter on July 8 with Manhattan federal judge Richard Sullivan to complain about the “intense media storm” surrounding his client’s case.

Steinberg, who worked for SAC’s Sigma Capital unit, faces trial on Nov. 18 for allegedly trading on illegal stock tips provided by his former analyst, Jon Horvath, who has pleaded guilty and is cooperating with the feds.

“In particular, we are concerned about the media’s routine association of Mr. Steinberg with others suspected, accused or convicted of insider trading, which could cause a reader to presume his guilt,” Berke said.

In particular, the lawyer balked at stories linking Steinberg to his former boss, Steve Cohen, who has also been under intense government scrutiny – including potential criminal charges against his $15 billion firm.

“There can be no question that the coverage has directly linked Mr. Steinberg to both Mr. Cohen and the salacious allegations regarding SAC,” Berke told the judge.

The Post was cited as having published, along with the New York Times and the Wall Street Journal, a whopping 181 stories about Steinberg or SAC since September.

Berke asked that potential jurors fill out a questionnaire to screen bias, and then submit to follow-up questioning by lawyers “as needed.”

Berke said potential jurors are more candid when responding privately.

On Nov. 20, 2012, U.S. Attorney Preet Bharara’s office charged former SAC Capital portfolio manager Mathew Martoma in a $276 million insider trading case, the largest of its kind.

The alleged nefarious trading took place in shares of biotech stocks Elan and Wyeth in July 2008 ahead of the release of key clinical trial data. The government alleges that Martoma was given inside information from a renowned University of Michigan neurologist who served as the chairman of the safety monitoring committee overseeing the clinical trial of an Alzheimer’s drug the two companies were developing.

 

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