Hedge Fund Hot Shot PM-s Found Guilty in Insider Trading

Anthony Chiasson and Todd Newman -both former hedge fund hot shot portfolio manager found guilty in insider trading.

By Peter Lattman and William Alden to Dealbook

Former hedge fund rock stars were  found guilty on Monday of fraud and conspiracy, the latest convictions in the government’s unabated campaign to eliminate illegal conduct on Wall Street trading floors.

Both Hedge fund managers were found guilty after three days of deliberations. Jury convicted Anthony Chiasson, founder of hedge fund Level Global Investors  and a former PM at Diamondback Capital Management Todd Newman. The two hedgies had denied charges that they participated in a conspiracy that made more than $70 million illegally trading technology stocks.
“With today’s guilty verdicts, Todd Newman and Anthony Chiasson join the ranks of high-level hedge fund  fund managers who are being made to answer for their extraordinarily bad risk-reward analysis about what is right and what is wrong,” Preet Bharara, the United States attorney in Manhattan, said in a statement. “Like scores of privileged professionals before them, Newman and Chiasson are finding out the hard way that the opportunity cost of gaining an illegal edge in the market is the loss of one’s liberty.”
Juries in Federal District Court in Manhattan have convicted all 11 insider-trading defendants who have taken their cases to trial since 2009, the year that prosecutors began bringing charges arising out its many years of investigation into criminal activity at hedge funds.limitless-movie
Of the 72 people charged with insider trading crimes — the United States attorney’s office in Manhattan has secured 71 guilty pleas or convictions. (Deep Shah, an indicted former analyst at Moody’s, has been declared a fugitive.)
Todd Newman was a portfolio manager at Diamondback Capital Management.Louis Lanzano/Associated PressTodd Newman was a portfolio manager at Diamondback Capital Management.

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