Level Global Co-Founder Gets Six-And-A-Half Years

May 13 2013 | 3:01pm ET

Level Global Investors co-founder Anthony Chiasson was sentenced to six-and-a-half years in prison for insider-trading.

The sentence, handed down this morning, was the low end of the range suggested by Chiasson's own lawyers last month. Federal sentencing guidelines call for a term of between 10 and 13 years.

U.S. District Judge Richard Sullivan imposed the shorter sentence despite agreeing with prosecutors that eight to 10 years was the proper range. He also ordered Chiasson to pay a $5 million fine and said he would set forfeiture later.

Chiasson was convicted in December of insider-trading alongside former Diamondback Capital Management trader Todd Newman, who was sentenced to four years in prison. Prosecutors argued that Chiasson earned Level Global $68 million trading on confidential information passed to him by his former analyst, Spyridion Adondakis, who cooperated with the investigation.

"What I keep coming back to is this crime, these crimes, were committed over a long period of time, over a time when you were already fabulously wealthy," Sullivan said. "I don't know if I've ever sentenced someone as wealthy as you. It's hard to understand why someone would risk something like that."

But the news was not all good for Chiasson today: Sullivan rejected his request to remain free pending his appeal, and ordered him to report to a federal prison camp in upstate new York within 90 days.

Sullivan also chided Chiasson for chewing gum during the sentencing hearing.

"You conducted yourself with dignity—except for chewing gum," the judge said.


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

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

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.