Michael Steinberg (C) leaves Manhattan Federal Court in New York March 29, 2013.

Michael Steinberg (C) leaves Manhattan Federal Court in New York March 29, 2013. (REUTERS)

SAC's Steinberg Sentenced to 3-1/2 Years in Prison for Insider Trading

Politics Reuters

Michael Steinberg, a portfolio manager at Steven A. Cohen's SAC Capital Advisors hedge fund, was sentenced on Friday to 3-1/2 years in prison for insider trading.

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The sentence was imposed by U.S. District Judge Richard Sullivan in Manhattan, five months after a federal jury convicted Steinberg on securities fraud and conspiracy charges, in a case stemming from a broad crackdown on insider trading on Wall Street.

Sullivan also ordered Steinberg to pay a $2 million fine and forfeit $365,142.

Prosecutors accused Steinberg of trading on illegal tips about Dell Inc and Nvidia Corp passed to him by an SAC analyst, who admitted to swapping confidential information among a group of analysts at other hedge funds.

SAC has since been renamed Point72 Asset Management.

(Reporting by Nate Raymond in New York, Editing by Franklin Paul)