By . Reuters Reporter . PUBLISHED: . 23:00 EST, 28 March 2013 . | . UPDATED: . 12:54 EST, 29 March 2013 . Michael Steinberg, a portfolio manager at Steven A. Cohen's $15 billion hedge fund, was arrested by the Federal Bureau of Investigation at his home in New York City early on Friday morning in connection with a long-running insider-trading investigation, an FBI spokesman said. Steinberg later pleaded not guilty in federal court on charges that he traded shares of Dell Inc on insider information, sources close to the matter said on Thursday. He was released on a $3 million bail. SAC Capital suspended Steinberg from his . post in October 2012, and he has been moving among several hotels in . New York City in recent weeks, according to Reuters sources, as he . wanted to avoid being arrested at his Upper East Side home where he . lives with his wife and two children. Arrested: SAC Capital Advisors employee Michael Steinberg (right) walks out of a New York courthouse after being charged by U.S. prosecutors with engaging in insider trading . Elusive: Steinberg (center) has been moving among several hotels in New York City in recent weeks to avoid being arrested at his Upper East Side home . Steinberg's lawyer Barry Berke said in a statement to Reuters that his client had done 'absolutely nothing wrong.' 'At all times, his trading decisions were based on detailed analysis as well as information that he understood had been properly obtained through the types of channels that institutional investors rely upon on a daily basis,' Berke said. Meanwhile: Steven A. Cohen this week bought Picasso's Le Rêve for $155million as well as a Hamptons home for $60million . FBI Assistant Director George . Venizelos characterized the research used by Steinberg as 'nothing more . than well-timed tips from an extensive network of well-sourced . analysts.' 'Mr. Steinberg was at the center of an elite criminal club, where cheating and corruption were rewarded,' Venizelos said. Steinberg, 40, is the most senior SAC Capital Advisors employee to be charged in the U.S. government's probe into how hedge funds may use illegally obtained information to trade. Including Steinberg, nine people have been either charged or implicated with wrongful trading while they were employed at the Stamford, Connecticut-headquartered SAC. An SAC Capital spokesman had no immediate comment on the arrest. Steinberg's arrest had been widely expected after Jon Horvath, a former SAC analyst who worked closely with him, pleaded guilty last year to using illegally obtained information to trade in Dell and Nvidia Corp. Horvath has been cooperating with the government and had implicated Steinberg. Manhattan U.S. Attorney Preet Bharara issued a statement saying that Steinberg 'cultivated' insider information from other sources. 'As alleged, Michael Steinberg was another Wall Street insider who fed off a corrupt grapevine of proprietary and confidential information cultivated by other professionals who made their own rules to make money,' the statement said. 'With lightning speed in at least one case, Mr. Steinberg seized on the opportunity to cash in and tried to keep his crime quiet, as charged in the Indictment.' Steinberg, 40, is the most senior SAC Capital Advisors employee to be charged in the U.S. government's probe into how hedge funds may use illegally obtained information to trade . Widespread: Including Steinberg, nine people have been either charged or implicated with wrongful trading while they were employed at the Stamford, Connecticut-headquartered SAC . The arrest comes two weeks after SAC agreed to pay a record $616 million to the U.S. Securities and Exchange Commission to settle civil charges of insider trading. SAC neither admitted nor denied wrongdoing at that time. But the government made clear that that settlement did not preclude further charges. As part of that settlement, SAC Capital agreed to pay $14 million to settle charges of improper trading in Dell, in which a former trader who reported to Steinberg had been involved. Meanwhile, Steven A. Cohen this week bought Picasso's Le Rêve for $155million as well as a Hamptons home for $60million.
Michael Steinberg, 40, a portfolio manager at .
Steven A. Cohen's $15 billion hedge fund, was arrested Friday at his home in New York City .
Steinberg is charged with trading shares of Dell Inc on insider information .
SAC Capital suspended Steinberg from his .
post in October 2012 .
He has been moving among several hotels .
to avoid being arrested at his Upper East Side home where he lives with .
his wife and two children .
Meanwhile, Steven A. Cohen this week bought Picasso's Le Rêve for $155million as well as a Hamptons home for $60million .
Cohen made the purchases a couple weeks after settling two insider-trading lawsuits with the government for a fine of $616 million .
By . Reuters Reporter . PUBLISHED: . 23:00 EST, 28 March 2013 . | . UPDATED: . 12:54 EST, 29 March 2013 . Michael Steinberg, a portfolio manager at Steven A. Cohen's $15 billion hedge fund, was arrested by the Federal Bureau of Investigation at his home in New York City early on Friday morning in connection with a long-running insider-trading investigation, an FBI spokesman said. Steinberg later pleaded not guilty in federal court on charges that he traded shares of Dell Inc on insider information, sources close to the matter said on Thursday. He was released on a $3 million bail. SAC Capital suspended Steinberg from his . post in October 2012, and he has been moving among several hotels in . New York City in recent weeks, according to Reuters sources, as he . wanted to avoid being arrested at his Upper East Side home where he . lives with his wife and two children. Arrested: SAC Capital Advisors employee Michael Steinberg (right) walks out of a New York courthouse after being charged by U.S. prosecutors with engaging in insider trading . Elusive: Steinberg (center) has been moving among several hotels in New York City in recent weeks to avoid being arrested at his Upper East Side home . Steinberg's lawyer Barry Berke said in a statement to Reuters that his client had done 'absolutely nothing wrong.' 'At all times, his trading decisions were based on detailed analysis as well as information that he understood had been properly obtained through the types of channels that institutional investors rely upon on a daily basis,' Berke said. Meanwhile: Steven A. Cohen this week bought Picasso's Le Rêve for $155million as well as a Hamptons home for $60million . FBI Assistant Director George . Venizelos characterized the research used by Steinberg as 'nothing more . than well-timed tips from an extensive network of well-sourced . analysts.' 'Mr. Steinberg was at the center of an elite criminal club, where cheating and corruption were rewarded,' Venizelos said. Steinberg, 40, is the most senior SAC Capital Advisors employee to be charged in the U.S. government's probe into how hedge funds may use illegally obtained information to trade. Including Steinberg, nine people have been either charged or implicated with wrongful trading while they were employed at the Stamford, Connecticut-headquartered SAC. An SAC Capital spokesman had no immediate comment on the arrest. Steinberg's arrest had been widely expected after Jon Horvath, a former SAC analyst who worked closely with him, pleaded guilty last year to using illegally obtained information to trade in Dell and Nvidia Corp. Horvath has been cooperating with the government and had implicated Steinberg. Manhattan U.S. Attorney Preet Bharara issued a statement saying that Steinberg 'cultivated' insider information from other sources. 'As alleged, Michael Steinberg was another Wall Street insider who fed off a corrupt grapevine of proprietary and confidential information cultivated by other professionals who made their own rules to make money,' the statement said. 'With lightning speed in at least one case, Mr. Steinberg seized on the opportunity to cash in and tried to keep his crime quiet, as charged in the Indictment.' Steinberg, 40, is the most senior SAC Capital Advisors employee to be charged in the U.S. government's probe into how hedge funds may use illegally obtained information to trade . Widespread: Including Steinberg, nine people have been either charged or implicated with wrongful trading while they were employed at the Stamford, Connecticut-headquartered SAC . The arrest comes two weeks after SAC agreed to pay a record $616 million to the U.S. Securities and Exchange Commission to settle civil charges of insider trading. SAC neither admitted nor denied wrongdoing at that time. But the government made clear that that settlement did not preclude further charges. As part of that settlement, SAC Capital agreed to pay $14 million to settle charges of improper trading in Dell, in which a former trader who reported to Steinberg had been involved. Meanwhile, Steven A. Cohen this week bought Picasso's Le Rêve for $155million as well as a Hamptons home for $60million.
2013 . Michael Steinberg, a portfolio manager at Steven A. Cohen's $15 billion hedge fund, was at his home in New York City early on Friday Dell Inc on insider information, sources close to $3 million bail. SAC Capital suspended Steinberg from his . post in October 2012, and he has been moving among several hotels in . New York City in East Side home where he . lives with his wife and two children. Arrested: SAC Capital Advisors to avoid being arrested at his Upper East Side A. Cohen this week bought Picasso's Le Rêve for $155million as well as a Hamptons home for charged in the Indictment.' Steinberg, 40, is the involved. Meanwhile, Steven A. Cohen this week bought Picasso's Le Rêve for $155million as well as a Hamptons home for $60million.