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.

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