Insider trading convictions
Level Global Investors LP co-founder Anthony Chiasson, who left SAC Capital Advisors LP to start his hedge fund, and former Diamondback Capital Management LLC portfolio manager Todd Newman were convicted in an insider-trading scheme that reaped more than $72 million.
After deliberating about two days, a jury in Manhattan federal court found both men guilty of conspiracy to commit securities fraud for a scheme to trade on Dell Inc. and Nvidia Corp. using illicit tips.
They remain free on bail as they await sentencing. They face as many as 20 years in prison.
The U.S. victory may accelerate the Justice Department’s investigation of SAC Capital, founded by billionaire Steven Cohen. During the trial, the judge ruled Level Global’s other co-founder, SAC Capital alumnus David Ganek, and current SAC Capital fund manager Michael Steinberg, were unindicted co-conspirators.