Level Global Co-Founder, Two Others To Face Trial Together

Jul 2 2012 | 2:43pm ET

Three accused hedge fund insider-traders will stand trial together in October.

Level Global Investors co-founder Anthony Chiasson, former Diamondback Capital Management trader Todd Newman and former SAC Capital Advisors analyst Jon Horvath were arrested in January as part of the government's ongoing insider-trading crackdown. According to federal prosecutors, the three 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 three are linked to the Primary Global Research insider-trading ring; four others charged alongside them have already pleaded guilty and are cooperating with prosecutors.

Chiasson, Newman and Horvath had asked to be tried separately. But U.S. District Judge Richard Sullivan rejected those requests, ruling that the three will face a jury together, beginning on Oct. 29.

Newman's lawyer complained that the jury will be prejudiced to hear about how much the other defendants made—Newman's profit is pegged at just $3.8 million, while Chiasson's was allegedly $57 million. Sullivan would have none of it.

"I tried a murder trial with the shooter and the look-out at the same time," he said. "How do you think they felt?"


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of