Ex-Level Global Analyst Says He Tipped Boss, Level Global, SAC

Nov 15 2012 | 12:40pm ET

A former analyst at Diamondback Capital Management analyst told jurors that has passed confidential tips he received to a number of people, including his boss at Diamondback and a Level Global Investors analyst who claimed to hand them up to that firm's founders.

Jesse Tortora, who has pleaded guilty to fraud charges and who is cooperating with prosecutors, was the first witness to take the stand at the trial of Level Global co-founder Anthony Chiasson and former Diamondback portfolio manager Todd Newman. And he wasted little time in tarring other admitted and alleged members of his "criminal club," including the defendants and several people who have not been charged in the case.

Tortora said he received confidential information about technology companies from former Dell Inc. employee Sandeep Goyal and other corporate insiders. He then passed those tips on to Newman, former Level Global analyst Spyridion Adondakis and former SAC Capital Advisors analyst Jon Horvath. All three of those men have pleaded guilty in the case, and Goyal and Adondakis are expected to testify.

According to Tortora, both Adondakis and Horvath told him they passed his tips to their bosses, "for the purpose of trading on" them. And Tortora said Adondakis didn't just give the information to Chiasson, but also to Level Global's other founder, David Ganek, while Horvath allegedly said he gave the information to SAC's Michael Steinberg. Neither Ganek nor Steinberg has been charged with any wrongdoing, but Steinberg has been identified as an unindicted co-conspirator and put on leave from SAC.

Steinberg would not comment, but Ganek's lawyer said that "with the trial now underway it speaks for itself" that no one else has been charged and that he hasn't "heard anything from the government about my client."

In their opening statements on Tuesday, lawyers for Chiasson and Newman attacked Tortora and Adondakis, and claimed their clients had no idea their subordinates were trading in insider information. Newman's lawyer said that his client's "biggest mistake" was hiring Tortora.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Expert Says Scale Of Baillon Classic Car Find Rare

Dec 29 2014 | 3:40am ET

Forget about hedge funds, buying rare, classic cars could be called the ultimate...

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

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.