“The e-mails that were relayed to Steinberg do indicate to me that he understands the source of the information that he’s getting and he’s trading on it,” Sullivan wrote. “All of that indicates this is inside information from the company that’s not available anywhere else.”
Horvath was one of eight analysts and portfolio managers charged in January 2012 with being part of what Bharara described as “a tight-knit circle of greed” whose members trafficked in confidential information from 2007 to 2009.
Pleaded Guilty
Six of those charged in the case have pleaded guilty and agreed to cooperate with the U.S.
Horvath pleaded guilty just weeks before he was set to go on trial with Chiasson and Newman. The two fund managers were convicted in December by a federal jury in Manhattan and are scheduled to be sentenced by Sullivan on April 19.
Sullivan ruled during Chiasson and Newman’s trial that David Ganek, a Level Global co-founder, was also an uncharged co-conspirator in the case. Both Chiasson and Ganek worked at SAC Capital before starting Level Global.
Ganek hasn’t been charged with any crime. Ganek’s attorney, John Carroll, said in December when asked about Sullivan’s ruling that “both the U.S. attorney and the SEC have been investigating this case for two years and neither has found reason to charge my client.”
Others Charged
Two others who were charged with being part of the scheme pleaded guilty and testified at the trial as prosecution witnesses.
Jesse Tortora, a former analyst who worked for Newman, and Spyridon “Sam” Adondakis, who once worked as an analyst for Chiasson, described for the jury how they swapped nonpublic information obtained from insiders at technology companies. They said they then passed on that information to their portfolio managers who traded on the illegal tips.