Arrested Diamondback Manager Keeps Bail

Jan 26 2012 | 9:53am ET

A hedge fund trader arrested last week as part of the government's latest insider-trading case can remain free on bail, a judge ruled.

Todd Newman, a former portfolio manager at Diamondback Capital Management, had his $3 million bail approved by U.S. Magistrate Judge Michael Dolinger in Manhattan. Dolinger also approved the $300,000 bond set last week for Danny Kuo, a technology fund manager at Whittier Trust in California.

Newman and Kuo are two of the four men arrested last week; the others were Level Global Investors founder Anthony Chiasson and SAC Capital Advisors analyst Jon Horvath. The four were allegedly part of an insider-trading ring with former Level Global analyst Spyridion Adondakis, former Diamondback analyst Jesse Tortora and former Neuberger Berman and Dell Computer employee Sandeep Goyal. All seven were charged last week; Adondakis, Tortora and Goyal have pleaded guilty and are cooperating with prosecutors.

Newman and Kuo each face up to 25 years in prison if convicted of conspiracy and securities fraud.

In addition to the bond, Dolinger ordered Newman to surrender his passport and Kuo, who also holds Taiwanese citizenship, to surrender both of his. In addition, Newman's travel has been limited to Massachusetts, Rhode Island, Connecticut and parts of New York, and Kuo's wife was ordered to notify the court at least two weeks in advance if she and Kuo's child plan any "significant" travel outside of the U.S.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.