U.S. Prosecutor Dismisses Charges Against Michael Steinberg in Insider Trading Case

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Michael Steinberg, right, a former top portfolio manager at Steven A. Cohen's SAC Capital Advisors hedge fund, and his lawyer Barry Berke exit the Federal Court in Manhattan, New York, May 16, 2014. Eduardo Munoz/Reuters

Oct 22 The federal prosecutor in Manhattan said on Thursday he would move to dismiss charges against Michael Steinberg, formerly a top portfolio manager at SAC Capital Advisors, and six others who were convicted in an alleged insider trading scheme.

U.S. Attorney Preet Bharara said in a statement that the reason for his decision was a December ruling from a federal appeals court that more narrowly defined what constitutes insider trading. The U.S. Supreme Court this month declined a request by prosecutors to review that ruling.

Steinberg had been sentenced to 3-1/2 years in prison after his 2013 conviction.