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Stamford Trader Indicted On Insider Trading Charges Friday

The story was updated at 10:45 a.m. STAMFORD, Conn. — A trader at Stamford-based SAC Capital was arrested Friday morning, a Business Insider article said.

According to the report, Michael Steinberg was led out of his New York City apartment in handcuffs at about 6 a.m.

Steinberg, 41, was charged with one count of conspiracy to commit securities fraud and four counts of securities fraud, the FBI announced Friday morning.

“As alleged, Michael Steinberg was another Wall Street insider who fed off a corrupt grapevine of proprietary and confidential information cultivated by other professionals who made their own rules to make money," Manhattan U.S. Attorney Preet Bharara said in a statement. "With lightning speed in at least one case, Mr. Steinberg seized on the opportunity to cash in and tried to keep his crime quiet, as charged in the Indictment."

If convicted of the conspiracy charges, he could face a maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense, the FBI said.  Each of the securities fraud counts carries a maximum sentence of 20 years in prison and a fine of $5 million or twice the gross gain or loss from the offense, according to the FBI.

"Mr. Steinberg’s arrest is the latest in the FBI’s campaign to root out insider trading at hedge funds and expert networking firms, resulting in more than 70 arrests so far," a statement from FBI Assistant Director George Venizelos said. "As alleged, Mr. Steinberg was at the center of an elite criminal club, where cheating and corruption were rewarded. Research was nothing more than well-timed tips from an extensive network of well-sourced analysts."

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