SAC trader's lawyers seek access to witnesses

Though the SEC's civil case won't be tried until after Michael Steinberg's criminal trial is over, his lawyers want to question witnesses early

Former SAC Capital Advisors portfolio manager Michael Steinberg's lawyers are asking the court to grant them access to witnesses that the Securities and Exchange Commission has against him.

In addition to the SEC's civil case against him, Steinberg faces criminal charges. His lawyers want access to the SEC's potential witnesses in time for the criminal trial, set to begin on Nov. 18, after which the civil case will go to trial. Steinberg has pleaded not guilty to conspiracy and securities fraud charges in a scandal in which he's accused of insider trading on secret information about technology companies.

“Even if Mr.Steinberg could complete all of his civil discovery after his criminal trial, that does not mean that he should be compelled to do so,” his lawyer Barry Berke said in a court filing.

Steinberg isn't the only former SAC employee in trouble. Another former portfolio manager, Matthew Martoma, is on the chopping block, as is  SAC frontman Steven A. Cohen.

Read more at the Wall Street Journal.

For more InsideCounsel coverage of insider trading, see:

U.S. indicts SAC Capital on fraud charges

SEC charges hedge-fund manager Steven A. Cohen

Survey reveals murky ethical compass on Wall Street

3rd Circuit upholds longest insider-trading sentence

Rajaratnam's conviction upheld

Former Bristol-Myers exec admits guilt in insider trading case

 

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