Weeks ago it broke that the FBI had tried to have analyst John Kinnucan wear a wire to catch an unknown hedge fund employee insider trading.
The man the FBI was trying to bust, is allegedly Michael Steinberg, a tech-fund manager at SAC’s Capital New York division, Sigma Capital Management, the Wall Street Journal reported.
But it’s important to remember that Steinberg hasn’t himself been accused of any wrongdoing; SAC received the subpoena and that’s the extent of what we know officially, at this point.
Steinberg is 38 and began working at SAC in 1997. He joined the Sigma division in 2001, where he worked with former SAC manager, Richard Grodin – who also received a subpoena as part of the insider-trading investigation “last fall.”
The subpoena obviously didn’t worry Steinberg. In September last year, Steinberg, bought a new penthouse at 885 Park Avenue for $8 million.
Here’s what else we know about him.
He is a Wisconsin University grad, which is where he met his wife, Elizabeth. His family lives in Great Neck in New York.
His philanthropic projects include Turn the Corner, a charity that raises money for Lyme Disease and other “tick borne diseases.” He attended a benefit last year sponsored in part by Level Global, another hedge fund involved in the insider trading scandal. One of the benefit’s prizes was breakfast with Steve Cohen.
And Sigma, where Steinberg works, has $1.5 billion AUM and apparently includes a significant chunk of Steve Cohen’s personal money. It is also one of SAC’s trading “pods” – a unit that operates independently but feedss information and profits back to SAC.
As a technology-fund manager, Mr. Steinberg is expected to keep Mr. Cohen up to speed on his thinking about technology stocks, a person close to the situation says.
Mr. Grodin, who closed his fund, Quadrum Capital, last fall, received a subpoena as part of the insider-trading investigation last fall. Mr. Grodin didn’t return calls for comment.