Level Global Founder, Co-Defendants Hit With New Charges

Aug 29 2012 | 1:10pm ET

Three hedge funders arrested in the expert-network insider-trading crackdown saw the indictments against them lengthen yesterday.

Prosecutors added charges related to alleged improper trading in Nvidia Corp. shares against Anthony Chiasson, Jon Horvath and Todd Newman. The three men were originally charged only with insider-trading in Dell Corp. shares; all three pleaded not guilty to the initial charges in February.

More charges could still be on the way: Prosecutors have said that a large number of stocks could be at issue in the trial, currently set to begin on Oct. 29.

The new allegations bring to more than $60 million the illicit profits the three men are alleged to have earned.

Chiasson is a co-founder of Level Global Investors and Newman a former portfolio manager at Diamondback Capital Management. Those firms were two of the four hedge funds raided by the Federal Bureau of Investigation in November 2010; of the four, only Diamondback remains in business. Horvath is a technology analyst at SAC Capital Advisors' Sigma Capital Management unit.

The indictment accuses Chiasson of improperly short-selling 1 million Nvidia shares, Newman of improperly shorting 375,000 shares and Horvath of an improper swaps bet equivalent to shorting 160,000 shares. The allegedly nefarious transactions took place in April and May of 2009.

The three men are currently free on bail and face up to 25 years in prison if convicted. A fourth man arrested with them, Danny Kuo, pleaded guilty in April and is cooperating with prosecutors.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.