A former employee of Dell Inc. is being prosecuted by the U.S. Government concerning alleged insider trading. Dell, the third largest computer maker in the world, employs 14,000 workers in Central Texas.
Michael Steinberg faces five counts of securities fraud and conspiracy to commit this fraud. Dealings he had concerning Dell and Nvidia Corp in 2008 and 2009 are said to have been based upon insider information.
One of the primary witnesses testifying against Steinberg was a former analyst who pleaded guilty to insider trading during this past year. The former analyst is facing up to 45 years in prison, and he reportedly told jurors that he was cooperating with the government in the hopes of avoiding a maximum prison stay. This analyst is said to have been a member of a "corrupt circle." This would have included Wall Street analysts who are claimed to have swapped information concerning hedge funds to be traded upon.
A hedge fund involving Steinberg has already been the focus of a $1.2 billion plea deal that occurred during the past month. The investigation of this hedge fund has been described as long-running.
Experienced securities litigation attorneys are required in these matters. Insider trading allegations can never be taken lightly. Securities fraud litigation to begin with involves a highly regulated and complex area of law. As the above matter demonstrates, the stakes are very high for all parties involved.
Here we have a deal said to be worth more than $1 billion. Also, we are looking at defendants that could be facing decades of imprisonment. It can also involve certain individuals testifying against others in hopes of reducing their own sentence. We need to make certain that every side receives a fair trial and has competent representation available.