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

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of