Level Global Founder, SAC, Diamondback Traders Plead Not Guilty

Feb 14 2012 | 1:57pm ET

Three hedge fund employees arrested last month on insider-trading charges have pleaded not guilty.

Level Global Investors co-founder Anthony Chiasson, former Diamondback Capital Management trader Todd Newman and former SAC Capital Advisors analyst Jon Horvath entered their pleas today in Manhattan federal court. A fourth man charged in the alleged scam, Whittier Trust Co.'s Danny Kuo, also pleaded not guilty to the conspiracy and securities fraud charges.

The four men are the latest rounded up as part of the government's ongoing insider-trading crackdown, an effort that has already ensnared more than 60 people and won more than 50 convictions or guilty pleas, including that of Galleon Group founder Raj Rajaratnam. Chiasson, Newman, Horvath and Kuo are linked by prosecutors to the Primary Global Research insider-trading ring. Three other men charged alongside the four have already pleaded guilty and are cooperating with prosecutors.

According to the U.S. Attorney's Office in Manhattan, the four men were part of a criminal club that made more than $60 million in illegal profits, including a single $53 million profit on Dell Inc. shares that is the "largest single trade ever charged in the Southern District in an insider-trading case."

The four men face up to 25 years in prison if convicted. All are currently free on bail.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note