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: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.