Chiasson, Newman Settle With SEC

Jun 14 2013 | 10:55am ET

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.


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.