No Jail For Dell Tipster

Dec 6 2013 | 2:12pm ET

A former Dell Inc. employee who prosecutors credited with helping ensnare SAC Capital Advisors' Michael Steinberg has been spared prison.

Daniel DeVore was sentenced to time served and two years of supervised release yesterday. U.S. District Judge Jed Rakoff also ordered DeVore to forfeit $145,750, but did not fine the former supply manager, who passed confidential tips to hedge fund managers while moonlighting at expert network Primary Global Research.

Prosecutors did not object to the no-jail sentence.

Rakoff said that DeVore deserved the same treatment as other cooperating witnesses who offered "vital assistance" in the insider-trading probe. "It seems to me all of that applies totally to Mr. DeVore and warrants a sentence not involving incarceration."

DeVore had faced up to 21 months in prison under federal sentencing deadlines.

Among the hedge fund analysts who DeVore tipped was Jesse Tortora, formerly of Diamondback Capital Management. Tortora in turn passed the information to his boss, Todd Newman, who was sentenced to four years in prison, and to Jon Horvath, Steinberg's analyst and the star witness against his former boss, whose trial is ongoing.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note