Bloomberg reports that U.S. District Judge Richard Sullivan in Manhattan said Thursday that e-mails and instant messages involving David Ganek of Level Global and SAC Capital’s Michael Steinberg sufficiently showed that they may have known information they used for trades came from insiders.
That means the communications can be shown to the jury at the criminal trial of Anthony Chiasson, who co-founded Level Global with Ganek, and Todd Newman, a former portfolio manager at Diamondback Capital Management. Neither Ganek nor Steinberg has been charged with a crime. Lawyers for Chiasson and Newman had asked the judge to exclude the messages.
'It seems to me that the evidence against Mr. Ganek is largely circumstantial', Sullivan said Thursday. 'But I do think the rest of the facts support that Mr. Ganek' may have been aware of the source of his information, the judge said.
He drew a similar conclusion about the Steinberg communications.
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