Prosecutors haven’t disclosed any evidence to show that Cohen knew the Dell assessments stemmed from illegal tips or that he sold shares using inside information about the computer maker’s earnings.
Steinberg, who faces insider trading charges related to the transaction, has pleaded not guilty. Horvath, who pleaded guilty last year to securities fraud and conspiracy, is cooperating with prosecutors and may testify against Steinberg, prosecutors said.
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Other trades being investigated would give the government until around 2016 to make a case against Cohen. The U.S. has been investigating the firm’s trading in InterMune Inc. and Weight Watchers International Inc., a person with knowledge of the matter said in December.
Neither SAC Capital nor Cohen has been accused of any wrongdoing in relation to InterMune or Weight Watchers.
The government also retains a fall-back option that could close down SAC and ban Cohen from the securities industry even without a criminal case.
On Nov. 20, SAC received a notice from the SEC warning that the agency planned to sue the firm for securities fraud and control-person liability unless the hedge fund could persuade it not to. A person familiar with the matter said Cohen himself might be added to the notice at some point.
With nine SAC employees linked to illegal insider trading, Cohen could be sued for negligent supervision of his staff regarding securities fraud. Penalties in a settlement or after a trial could include Cohen’s being barred from the securities industry and a shuttering of his firm.
The Martoma case is U.S. v. Martoma, 12-cr-00973, U.S. District Court, Southern District of New York (Manhattan).