There’s something weird about the involvement of Michael Steinberg, a portfolio manager at Sigma, a subsidiary of SAC Capital, in the FBI’s huge insider trading investigation.Yesterday, the Wall Street Journal reported that the man John Kinnucan, a consultant with Broadband Research, was asked to wear a wire to record was Michael Steinberg.
From the Wall Street Journal:
An independent analyst, John Kinnucan, has said he refused a Federal Bureau of Investigation request in October to record conversations with a client, whom he has declined to identify. That client is Michael Steinberg, a technology-fund manager at SAC division Sigma Capital Management, according to a person familiar with the matter.
Today, we got a call from John Kinnucan, who told us that the Wall Street Journal’s “source familiar with the matter” is wrong – the individual the FBI asked him to record wasn’t Steinberg. Read our story by clicking here.
What Steinberg may or may not have done, by the way, is unclear. At the moment, he’s not accused of any wrongdoing that we know of. But now there are two sides debating whether or not Steinberg was the individual that Kinnucan was asked to record.
Because we reported the news from someone with a first-hand account who went on the record, and the WSJ reported theirs from an unnamed source, we wondered if the Wall Street Journal would adjust their story.
But it won’t – we got an email from the story’s author, Susan Pulliam, moments ago that said, “We stick by our story.”
So something is odd…
It seems impossible that both Kinnucan and the Wall Street Journal’s source are telling the truth.
Making matters more confusing, only a few people know what the truth is – the FBI agents who asked Kinnucan to wear a wire and Kinnucan.
Obviously the Wall Street Journal is a trusted source of information, so if we were to speculate, we’d say that they must also have a first-hand source.
But because Kinnucan was willing to go on the record with his information, we’re inclined to believe him.
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