Former SAC Capital trader Michael Steinberg was found guilty for insider trading in shares of tech stocks Dell and Nvidia.
Steinberg, who worked at SAC subsidiary Sigma Capital, was found guilty on all five counts (one conspiracy, four securities fraud), CNBC’s Kate Kelly reported.
He faces up to 85 years in federal prison, according to CNBC’s Kelly.
Before the guilty verdict came out, Steinberg fainted in the courtroom, according to Reuters.
SAC Capital, the $US14 billion Stamford, Connecticut-based hedge fund run by Steve Cohen, was criminally indicted this summer on insider trading charges.
Federal prosecutors charged the fund “with criminal responsibility for insider trading offenses committed by numerous employees and made possible by institutional practices that encouraged the widespread solicitation and use of illegal inside information.”
Former SAC portfolio manager Matthew Martoma, who fainted on his front lawn when the FBI showed up, has a trial coming up for insider trading. He has been charged with using non-public drug trial information to trade in shares of pharmaceutical companies Elan and Wyeth.
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