Prosecutors Want Tapes Out Of Chiasson Trial

Oct 23 2012 | 1:23pm ET

In their case against two accused hedge fund insider-traders, prosecutors are taking an unfamiliar approach to at least some wiretapped recordings: opposing their admission at trial.

Federal prosecutors in New York yesterday asked a judge to exclude several taped calls made by a pair of cooperating witnesses in the case. The defense team for Level Global Investors founder Anthony Chiasson and former Diamondback Capital Management portfolio manager Todd Newman has sought to have the calls, made by Jesse Tortora, Newman's former analyst, and Spyridon Adondakis, Chiasson's former analyst, admitted.

But prosecutors, who have used taped phone calls to great effect in winning dozens of guilty pleas and jury verdicts in their crackdown on insider trading, say these particular tapes should remain silent.

"The defendants have declined to indicate for what purpose they will seek to offer these exhibits at trial," prosecutors wrote. "The calls contain a mixture of incriminating and," according to the government, false "exculpatory statements by the out-of-court defendants."

Prosecutors said the calls were made following "significant publicity" about the insider-trading crackdown. On one of them, one of Chiasson and Newman's former co-defendants, Danny Kuo, is reportedly heard saying, "I have high suspicion that this phone line could be tapped."

Kuo pleaded guilty in April, one of six members of what U.S. Attorney Preet Bharara has called a "criminal club," to do so.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.