SAC Capital portfolio manager Michael Steinberg is hoping a new judge will increase his chances of walking away a free man.
Steinberg’s lawyer, Barry Berke, yesterday asked that his client be assigned a judge at random by selecting a name from a wooden wheel in the courthouse. Manhattan federal Judge Richard Sullivan said he would consider the request.
Steinberg, who was indicted on insider-trading charges, was indicted as part of a larger case that went to trial last year.
As a result, his case was automatically assigned to Sullivan, the judge who presided over the earlier insider-trading trial of Level Global Investors founder Anthony Chiasson, who was convicted on all counts.
Depending on the judge, the government has a different burden of proof in an insider-trading case, which is why Steinberg believes he might fare better with a new judge.
Manhattan federal Judge Jed Rakoff has ruled that prosecutors must prove that the person who trades on confidential information knew that the company insider received some personal benefit — usually money — in exchange for passing along the tips.
Sullivan, on the other hand, has ruled that this isn’t necessary for a conviction.