Diamondback and Level Global Hedge Fund Managers Convicted of Insider-Trading

Gavel

Level Global Investors co-founder Anthony Chiasson and former Diamondback Capital Management portfolio manager Todd Newman were convicted of securities fraud and conspiracy for an insider-trading scheme that reaped more than $72m.

Bloomberg reports that after deliberating a little more than two days, a federal jury in New York found both men guilty of conspiracy to commit securities fraud for a scheme to trade on Dell and Nvidia Corp using illicit tips.

The panel found Chiasson, 39, guilty of five counts of securities fraud, earning Level Global $68.5m on inside tips trading on the two technology company stocks. Newman, 48, was convicted of four counts of securities fraud related to trades on inside information that earned his fund about $3.8m.

'We had all the evidence we needed', said Felicia Rivera, a juror from Westchester County near New York City, said after court.

Harper Buonanno, another juror, said the panel considered the testimony of the four cooperating witnesses, including two analysts who worked for the defendants.

'We had a lot of the government’s documentary evidence, including the witnesses’ testimony', Buonanno said after Monday’s verdict. 'We had a lot of evidence available to us. We used it all'.

Hit the link below to access the complete Bloomberg article:

Hedge Fund Managers Convicted of Insider-Trading Scheme

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