Anthony Chiasson and Todd Newman are seeking to overturn their criminal convictions on insider-trading charges, but they're eager to dispose of the civil allegations against them.
The Level Global Investors co-founder and former Diamondback Capital Management portfolio manager have struck a tentative deal with the Securities and Exchange Commission that will see both barred from the securities industry.
The proposed settlements do not include monetary provisions, pending the men's appeals. Should they win those appeals, the deal with the SEC would become void and the agency could seek a civil trial against them. But if their convictions are upheld, the two sides would then address disgorgement and civil penalties, SEC Senior Counsel Daniel Marcus wrote to U.S. District Judge Harold Baer.
Until then, the settlements "would be based solely on the collateral estoppel effect of their convictions and would not constitute admissions as to the facts charged in the SEC's complaint," Marcus wrote.
That complaint alleges that the two men were part of a larger insider-trading circle that dealt in tips about technology stocks. Chiasson and Newman were convicted of earning $68 million trading on tips about Dell Inc. and Nvidia Corp. The former was sentenced to six-and-a-half years in prison; the latter four.
Baer said he would hold a status conference in October to deal with the settlement.