A Manhattan federal judge recently sentenced Michael Steinberg to 3.5 years in prison, three years of supervised released, the payment of a $2 million fine, and the forfeiture of over $365,000 for insider trading. Steinberg was convicted of four counts of securities fraud and one count of conspiracy to commit securities fraud after trading on information from company insiders at both Dell and NVIDIA and receiving almost $2 million in illegal profits.

Steinberg had been indicted in March of 2013 for allegedly trading on inside information about Dell and NVIDIA in his capacity as a portfolio manager for S.A.C. Capital’s Sigma Capital Management, LLC division. He was alleged to have received inside information from an intricate network of tippers about Dell and NVIDIA before they publicly announced disappointing gross margins.

As stock prices in Dell and NVIDIA fell by as much as 13%-14%, Steinberg closed out his short positions and options contracts in Dell in time to gain $1 million for Sigma. He was also able to gain $350,000 by aiding Simga’s exit from its NVIDIA holdings. In December of 2013, Steinberg was convicted of all five insider trading charges by a federal jury after four weeks of trial. The court rejected Steinberg’s motion for judgment of acquittal last week.

The entire press release can be found here.

If you or someone you know has lost money as a result of an investment, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies.