Accused Hedge Fund Insider-Traders Face Trial

Nov 13 2012 | 11:28am ET

Level Global Investors co-founder Anthony Chiasson and former Diamondback Capital Management trader Todd Newman will begin their battle against the odds—and insider-trading charges—today.

Opening statements will be heard in the case against the two men today in Manhattan federal court. Prosecutors have accused the two of being members of a "criminal club" that traded in confidential tips about technology companies and made $60 million doing so. Six others were charged in the case; all pleaded guilty, including two who struck deals with prosecutors ahead of the trial, and several are expected to testify against their alleged fellow "club" members.

Chiasson and Newman's legal teams have kept quiet about their legal strategy, although prosecutors have attempted to stop them from using some wiretaps that the government say contain false "exculpatory statements."

In its recent crackdown on insider-trading, the U.S. Attorney's Office in Manhattan has won seven jury verdicts—and has yet to lose a single case that went to trial. Among those to go down after a trial are Galleon Group founder Raj Rajaratnam, former McKinsey & Co. chief Rajat Gupta and two people linked to so-called "expert networks."

The trial formally opened last week, with jury selection. Seven women and five men, among them a bartender, a retired postal worker, a nurse and an unemployed dog-walker, will judge the two former hedge fund executives.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

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

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

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.