Prosecutors Urge Conviction Of 'Corrupt Chain' Hedge Fund Managers

Dec 12 2012 | 12:03pm ET

Prosecutors made their final pitch yesterday to keep their recent insider-trading winning steak alive, urging jurors to convict two hedge fund managers accused of making more than $70 million in illegal profits.

Assistant U.S. Attorney Antonia Apps told the jury that Level Global Investors founder Anthony Chiasson and former Diamondback Capital Management portfolio manager Todd Newman were members of a "corrupt chain" that included traders at other hedge funds, tipsters at technology companies and expert networkers.

"Todd Newman and Anthony Chiasson got secret confidential information from people who were insiders at public companies and used it to make millions of dollars in the stock market," she said.

"We’ve shown you proof beyond a reasonable doubt that Todd Newman and Anthony Chiasson knew they were getting secret information," she continued. "It's not a coincidence," she argued, that the two men made some of their biggest bets after their analysts, Spyridion Adondakis and Jesse Tortora, allegedly passed them tips. "It's because they had a secret pipeline to insiders at Dell and Nvidia. They had confidential information that other investors didn't have."

Adondakis and Tortora cooperated with prosecutors and testified against their former bosses.

When Apps finished, the defense used their first closing statement to attack the cooperators.

"The government's case against Todd Newman, my client, rises and falls on the word of one person, Jesse Tortora," Newman's lawyer, John Nathanson, said. "Ladies and gentlemen, the evidence in this case shows that Mr. Tortora lied to you and he cannot and should not be trusted to convict my client."

Chiasson's lawyer will give his closing statement today. The defense teams rested after calling just one witness on Monday.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Scene Last Night: Clinton, Schwarzman, Corzine, Neidich, Diamond

Nov 25 2014 | 5:52pm ET

Steve Schwarzman had a granddaughter yesterday morning. Last night he sat one table...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

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

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.