Ex-Hedge Fund Manager Says He Didn't Profit Much From Insider Scheme

Apr 22 2013 | 10:55am ET

Former Diamondback Capital Management trader Todd Newman has asked a judge for leniency in sentencing, telling him that he didn't make as much from the insider-trading scam of which he was convicted in December as prosecutors say.

Newman was found guilty of making $4 million in illicit profits on his trade. But his lawyers said he himself received only $442,761 from them, meaning he should get less than the six-and-a-half years he faces.

"To the extent that the gain is intended to be a measure of culpability—often thought of as a measure of 'greed'—it stands to reason that someone who actually receives less money should be deemed less culpable," Newman's lawyer, Stephen Fishbein, wrote to U.S. District Judge Richard Sullivan last week.

Newman's family also chipped in, with his mother writing that "a separation from her dad would be disastrous" for Newman's 12-year-old daughter.

Newman was convicted of fraud and conspiracy charges alongside Level Global Investors co-founder Anthony Chiasson. Five others have pleaded guilty in the case, including Jesse Tortora, Newman's analyst and the source of his confidential information, and a former SAC Capital Advisors analyst. SAC portfolio manager Michael Steinberg was arrested and charged in the case last month.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

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

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.