The SEC’s civil proceeding against Cohen stems from accusations that he failed to properly supervise Michael Steinberg and other traders at his SAC Capital Advisors hedge fund, which had $14 billion in assets before it pled guilty to insider trading. But Steinberg’s conviction is likely to be tossed because his case is almost exactly identical to that of Todd Newman and Anthony Chiasson, whose convictions were overturned by a Manhattan appeals court. In a stunning rebuke to the government, the Supreme Court on Monday let the appeals decision stand. “The same lack of evidence applies” to the Steinberg case, said...