A former SAC Capital Advisors portfolio manager pleaded not guilty on Friday to a five-count criminal indictment alleging that he engaged in insider trading on shares of two technology companies.
FBI agents arrested Michael Steinberg Friday morning following an investigation into insider trading, an FBI spokesman told CNBC.
The indictment accuses Steinberg of receiving the illegal information from his former associate Jon Horvath, who already pleaded guilty last year and is cooperating with investigators. Charges against Steinberg had been widely expected since Horvath's arrest.
The FBI alleges that Steinberg cultivated a network of sources of inside information, and traded on tips from them.
Barry Berke, attorney for Steinberg, told CNBC that the former SAC portfolio manager had done "absolutely nothing wrong".
"At all times, his trading decisions were based on detailed analysis as well as information he understood had been properly obtained through the types of channels that institutional investors rely upon on a daily basis. Caught in the crossfire of aggressive investigations of others, there is no basis for even the slightest blemish on his spotless reputation," he said in a statement.