SAC Capital was a hedge fund firm in Stamford, Conn., founded and managed by billionaire Steve Cohen. It has since been renamed Point72.
The feds had been circling Cohen and his fund for years, charging numerous employees with insider trading. Six of them have pleaded guilty. Only Steinberg and Mathew Martoma pleaded not guilty and fought the fraud charges, but they both lost.
Martoma will be sentenced on June 10 for insider trading involving the biotech Elan and Pfizer's(PFE) drug company Wyeth. He faces up to 45 years in prison and remains free on a $5 million bond.
Federal prosecutors have not charged Cohen, but they managed to pressure his firm, SAC Capital, into a $1.8 billion settlement. As part of the settlement, the firm is no longer permitted to manage money for outside clients.