Chiasson, Newman To Remain Free Pending Appeal

Jun 19 2013 | 9:47am ET

Two hedge fund managers convicted of insider-trading can stay out of jail for at least the next several months, a federal appeals court ruled yesterday.

The U.S. Second Circuit Court of Appeals in Manhattan allowed Level Global Investors co-founder Anthony Chiasson and former Diamondback Capital Management portfolio manager Todd Newman to remain free on bail, pending the appeal of their conviction. The court is not likely to hear that appeal until this coming December or January, meaning the Chiasson and Newman are likely to remain free for the better part of the year.

Newman had been due to report to prison on July 8 and Chiasson on Aug. 13.

Chiasson was sentenced to six-and-a-half years in prison and Newman four-and-a-half. The two men were convicted of membership in a larger insider-trading circle that dealt in tips about technology stocks. Prosecutors say the two earned their firms $68 million trading in Dell Inc. and Nvidia shares.

The Second Circuit's decision—and a comment from one of the judges during the hearing—indicate that court believes that there is a "substantial question" of law to be determined. U.S. Circuit Judge Barrington Parker said he expects "a lively appeal."

Chiasson and Newman are expected to argue that U.S. District Judge Richard Sullivan, who oversaw their trial, erred in his jury instructions by failing to specify that they had to know that the insiders leaking the information were doing so for personal benefit.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

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.