Nov. 19 - Breakingviews editors discuss why prosecutors may be pushing their luck by accusing SAC’s Michael Steinberg of illegally using fifth-hand information in an insider trading scheme.
So big trial underway today in New York Michael Steinberg -- SEC capital trader who's actually being accused of insider trading. But you -- say that the prosecutors may be pushing their luck but this one house up. While it looks like it normally insider trading case -- -- in some -- them but that's one that involves. Training on information fits hand in other words Michael Steinberg portfolio manager and SEC learned of this information. Through four other people. -- this is for trading in shares of Nvidia shares and down now and video of the information allegedly infamous so now tipster to tipster to tipster to tipster that told him. Him here's the question. Robert Steinberg knows that -- -- -- that the information was inside and confidential should be tried which is important to the case right and is one -- -- -- to get -- through that to convict him the other thing you got to prove is he -- know. That you know that the original source was compensated for that information that's and other relevant -- our country. That's fair -- Dornan when the when it's such a distant tetanus right about that however that you say that the judge in this case may be sympathetic attaches it to getting around us it's just a little bit of a maverick because in a separate case he said you know what you don't really have to prove that the guy in new. The original sources competition in the commission that's very much a minority. A minority position in this case where they successfully prosecute somebody yes it has to be a case where it was chase them believe. Another hedge fund guys. It was appealing the decision on exactly that point. Now of course the upshot is this what does this mean for Steve -- you know speak on of course it -- -- you know we have and the insider trading. Trials we have related to SEC -- -- we've had sex plead guilty -- two trial only to trials they've been good this is one of the other outlets in January mark Toma. Steve Collins still has to face civil charges on whether he failed to supervise these guys it's time -- trial is not directly rail related to that but I mean if it's -- and obviously it's one more time in the next one more element that says hey. Collagen and on about this stuff if he loses are -- on Steinberg wins and write -- -- Maybe it makes -- in the case little weaker against -- so there's something there that really right. And what does it mean for prosecutors in in the they've had a pretty good track record seven you know it's incredible 76. -- Guilty pleas or convictions an insider critic of these guys in his -- in -- you. You know since 2009. So you know. Yeah it's it's become almost has become common place these they're batting a thousand with another batting a thousand. But you know aren't they lose one there's still that 900 is up pretty dead and you know -- -- end but all all of winning -- -- -- any memories the only way back in the seventies -- 88 straight games went to Notre Dame I don't know why that but I like your words are above us stimulant. Fortunately and all this could be this could be because it's out of my -- this could be. The government's on date with the fighting not okay well thanks a lot rent. Will be back for more breaking news tomorrow.