Statement Of U.S. Attorney Preet Bharara On Dismissal Of Charges Against Michael Steinberg And Six Other Insider Trading Defendants

            “Today, this Office will move to dismiss charges against Michael Steinberg, who was previously convicted at trial, and six cooperating witnesses who pled guilty, all in connection with the same insider trading scheme charged in United States v. Newman and Chiasson.  The decision to dismiss these charges follows the Second Circuit’s Newman decision, and also reflects determinations, after careful consideration of all of our prior insider trading prosecutions, that insisting on maintaining guilty pleas in these cases would not be in the interests of justice.  These prosecutions were all undertaken in good faith reliance on what this Office and others, including able defense counsel for all those who pled guilty, understood to be the well-settled law before Newman.”