And then there were two.
Jon Horvath, a former technology analyst at a unit of hedge fund giant SAC Capital, pleaded guilty today to trading confidential stock tips and is cooperating with authorities in a bid for leniency.
Horvath, 42, pleaded before Manhattan federal judge Richard Sullivan to one count of conspiracy to commit securities fraud and two counts of securities fraud.
He faces up to 45 years in prison and more than $10 million in fines. He also agreed to forfeit any ill-gotten gains received as part of the insider-trading scheme.
Horvath was scheduled to go on trial Oct. 29 along with two other alleged co-conspirators, Anthony Chiasson, co-founder of Level Global, and Todd Newman, a former fund manager with hedge fund Diamondback.
The three men were arrested in January as part of a “corrupt circle of friends” that included a total of seven traders and analysts, according to Manhattan US Attorney Preet Bharara. Five, including Horvath, have pleaded guilty to insider-trading charges.
Horvath, who is originally from Sweden, is cooperating with authorities and could take the stand against Chiasson and Newman. Attorneys for the two didn’t return requests for comment.
Federal prosecutors said the tight-knit group netted a whopping $62 million just trading computer maker Dell — the largest illegal profit ever from trades of a single stock. The group also stands accused of illegal trading on shares of graphics firm Nvidia Corp.
Horvath told Sullivan that he passed along material, non-public information about Dell and Nvidia between Aug. 2008 and May 2009 to his portfolio manager at SAC, and hey executed trades based on the information.
Prosecutors recently named Horvath’s former boss at SAC’s Sigma Capital Management unit, Michael Steinberg, 40, as an unindicted co-conspirator.
“When I did these thing I knew what I was going was wrong and illegal,” Horvath told the court.
No sentencing date was set, but prosecutors have until March 31 to tell the judge whether Horvath is fully cooperating with them.
Horvath worked for SAC’s Sigma Capital Management unit in Midtown Manhattan at the time of his arrest.
“Until today, Mr. Horvath maintained he had not violated the law and we gave him the benefit of the presumption of innocence,” said SAC spokesman Jonathan Gasthalter.
“We are disappointed and angered to learn Mr. Horvath admittedly violated the law and SAC’s policies forbidding insider trading. We expect our employees to have integrity, play by the rules and follow the letter and spirit of the law.”
kwhitehouse@nypost.com