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

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...