FBI: Former SAC Capital trader Steinberg arrested

Mar 29, 2013, 10:10 AM EDT
Signage at SAC Capital Advisors LLC's offices in Stanford, Connecticut seen in this December 13, 2010 file photo.
REUTERS/Mike Segar/Files

Michael Steinberg, a former portfolio manager at SAC Capital Advisors, was arrested by the Federal Bureau of Investigation at his residence in New York City early Friday morning in connection with an insider trading investigation, a FBI spokesman said. Federal prosecutors were close to indicting Steinberg on charges that he traded on inside information on Dell stock, Reuters reported. Steinberg would be the eighth employee of Steven A. Cohen's $15 billion hedge fund to face criminal charges of insider trading since the FBI launched Operation Perfect Hedge in 2007, an undercover operation aimed at rooting out corruption on Wall Street.