Today’s Insider Trading Arrests Brought To You In Part By A Cooperating Witness Whose Name Starts With The Word “Spy”

By

Remember, about a year ago, when hedge fund Level Global was rumored to have a government mole in its ranks? At the time, the firm’s representatives said such reports were total bull shit, and, investors were told, here’s how they knew that to be the case:

“As is the case each time there is a new development in the U.S. Attorney’s investigation, we have conducted an extensive internal factual correlation analysis, cross-referencing the facts in the complaints to our firm’s records. Our experienced outside legal counsel has also conducted its own analysis. Based on all of our work and analysis, we have concluded that these complaints do not appear to be referencing Level or Level personnel.”

Frankly, LG was getting a little tired of having to constantly run factual correlation analysis in order to prove the world wrong but c’est la vie. Anyway, despite usually having a 99.9% accuracy rate, the factual correlation calculator apparently missed one.

Last month, federal prosecutors in Manhattan said in a court filing in the case of a PGR employee that Level Global had made a $1.7 million profit by covering a short position it had in Taiwan Semiconductor Manufacturing Co. Ltd. in June 2009. That May and June, a Level Global technology analyst had about seven phone calls with Manosha Karunatilaka, a PGR expert who worked at TSMC and has pleaded guilty to supplying inside information to investment fund clients, prosecutors said. The Level Global technology analyst, Spyridon “Sam” Adondakis, was overseen by Mr. Chiasson and is cooperating with the government’s investigation, the Journal has previously reported, citing people familiar with the situation.

And now this is happening:

The Federal Bureau of Investigation in Boston arrested Todd Newman, a former portfolio manager with hedge-fund firm Diamondback Capital Management who oversaw technology investments, according to a law enforcement official. The FBI separately arrested Jon Horvath, an employee of Sigma Capital Management, an affiliate of giant hedge fund SAC Capital Advisors, in Manhattan, an official said. Anthony Chiasson, a co-founder of former hedge-fund group Level Global Investors LP, surrendered in New York, and a fourth person was being sought.

FBI Arrests Three In Insider Probe [WSJ]
Related: Level Global Says No Snitches Work At This Fund

Comments (136)

  1. 1
    Posted by Gill Grunt | January 18, 2012 at 9:47 AM

    Spyridon had to go by "Sam" because "Spyro" was already taken.

  2. 2
    Posted by thomas malthus | January 18, 2012 at 9:49 AM

    All of this, but TOTAL SILENCE on corzine…what fucking scumbags! When is the next plane to….to…..

  3. 3
    Posted by guest | January 18, 2012 at 9:50 AM

    umm…what?

  4. 4
    Posted by worried guest | January 18, 2012 at 9:50 AM

    are you having some personal problems?

  5. 5
    Posted by Kegels123 | January 18, 2012 at 10:03 AM

    Shall we shag now or shag later?

    -Hedge Fund Mystery Man

  6. 6
    Posted by An Apologist | January 18, 2012 at 10:03 AM

    Hedge fund traders don't cheat. Extensive internal factual correlations analyses cheat.

  7. 7
    Posted by VonSloneker | January 18, 2012 at 10:05 AM

    Opa Spyridon!!! When we Greeks set out to make a mess, we do it right…

    - G. Papandreou

  8. 8
    Posted by The Biz Speak Guy | January 18, 2012 at 10:11 AM

    So, are they saying that they sub-optimized their defined internal processes in an over-arching risk management paradigm shift that resulted on co-locational buckets of aligned risk buttresses which, when they "drilled down" through the extensive internal factual correlation analysis suggested a synergy skew more toward bifurcated opinions of legality in the investment space?

  9. 9
    Posted by Mexi_Cant | January 18, 2012 at 10:12 AM

    Homies be goin to the pennnnnnnetentary.

  10. 10
    Posted by Guest | January 18, 2012 at 10:23 AM

    What year did they graduate from Harvard?

  11. 11
    Posted by Lynn Tilton | January 18, 2012 at 10:25 AM

    A full insider probe by FBI agents is a fanatsy of mine.

  12. 12
    Posted by AIG Quant via LEH | January 18, 2012 at 10:28 AM

    Spyro the dragon?

  13. 13
    Posted by Guest | January 18, 2012 at 10:30 AM

    Never mind – I looked them up on the alumni directory instead.

    Chiasson, Mr. Daniel GSA 2001

    I'm so proud.

  14. 14
    Posted by mourning becomes | January 18, 2012 at 10:30 AM

    will lulu meet tony in the shower and doubt him while reading gatsby?

  15. 15
    Posted by Inquisitive Soul | January 18, 2012 at 10:31 AM

    Any insider info on who will win the Giants 49ers game this weekend? Gut tells me Giants. But then again gut also told me MF Global was a great place to work. So my gut is usually not right. I also thought that Agassi would defeat Sampras in '95 US Open. UGH.. dead wrong on that one.

  16. 16
    Posted by Alt_EST | January 18, 2012 at 10:31 AM

    Nouns ∧ Verbs = Heinous Business Speak

  17. 17
    Posted by Guest | January 18, 2012 at 10:32 AM

    Did you go to Harvard?? Your faux-coy bragging is impressing the shit out of me.

  18. 18
    Posted by Guest | January 18, 2012 at 10:38 AM

    If Steve Young is healthy then the Giants do not stand a chance.

    -Tip Van Winkle

  19. 19
    Posted by VonSloneker | January 18, 2012 at 10:42 AM

    …the call is coming from inside the house

    -Sgt. Sacker

  20. 20
    Posted by Guest | January 18, 2012 at 10:47 AM

    At least he didn't say "hard stop." I hate it when people say that.

  21. 21
    Posted by Walter | January 18, 2012 at 10:51 AM

    Has the whole world gone crazy? Am I the only one around here who gives a shit about the rules? Mark it zero!

  22. 22
    Posted by Guest | January 18, 2012 at 10:52 AM

    With Dave Meggett and LT, I don't think the Giants have much to worry about.

    - guy who still plays Techmo Super Bowl sometimes

  23. 23
    Posted by Guest | January 18, 2012 at 10:53 AM

    Why?

  24. 24
    Posted by L. Winthorpe | January 18, 2012 at 10:58 AM

    Oh sure, like *he* went to Harvard…….

  25. 25
    Posted by Quant in Oklahoma | January 18, 2012 at 11:00 AM

    What do the UWS protesters have to do with Matt and Bess?

  26. 26
    Posted by Guest | January 18, 2012 at 11:01 AM

    I believe you're missing the point. The point is that whenever you hear about some scumbag insider trading ring, at least one perpetrator probably went to Harvard. But if you choose to read it differently that's OK with me – create your own reality, everybody else does.

  27. 27
    Posted by PermaGuestII | January 18, 2012 at 11:05 AM

    Fuck yeah!

    -Yale

  28. 28
    Posted by SDCERA Quant | January 18, 2012 at 11:06 AM

    Hey guys: The San Francisco Giants play BASEBALL….not football.

  29. 29
    Posted by J. Skilling | January 18, 2012 at 11:08 AM

    Fuckin' A!

  30. 30
    Posted by The Truth | January 18, 2012 at 11:13 AM

    going to jail for $340K in carry is the NKI

  31. 31
    Posted by guest | January 18, 2012 at 11:17 AM

    Kill yourself immediately. Do no pass go, do not collect $200.

  32. 32
    Posted by serious question | January 18, 2012 at 11:18 AM

    What's it like being the poster child for retroactive abortions?

  33. 33
    Posted by guest | January 18, 2012 at 11:19 AM

    How long did it take you to come up with that painful attempt at humor? 2-3 days?

  34. 34
    Posted by P. Allen | January 18, 2012 at 11:22 AM

    Well it's hard to fit insider trading into one's schedule, what with all the cocaine use and closeted homosexuality.

  35. 35
    Posted by J. Paulson | January 18, 2012 at 11:24 AM

    While going to jail seems a bit rough I'd settle for $340 in carry right about now.

  36. 36
    Posted by Captain Vito | January 18, 2012 at 11:29 AM

    It's a mediterranean thing.

  37. 37
    Posted by Abovethelaw | January 18, 2012 at 11:29 AM

    Your getting in the weeds there..

  38. 38
    Posted by Butner | January 18, 2012 at 11:30 AM

    any relation to that hot bitch Chiessi ?

    maybe you can share a cell…

  39. 39
    Posted by Lynn Tilton | January 18, 2012 at 11:35 AM

    Me to.

  40. 40
    Posted by HR Question | January 18, 2012 at 11:40 AM

    So what you are saying is I shouldn't hire the following candidates:

    Moletta Johnson
    Ratibulous Pefferfink
    Snitchelsby Grossman

  41. 41
    Posted by mexican | January 18, 2012 at 11:46 AM

    you mean ese's bato

  42. 42
    Posted by trojan_ | January 18, 2012 at 11:46 AM

    yeah… i'm going to need that TPS report…

  43. 43
    Posted by Guest Emeritus | January 18, 2012 at 11:48 AM

    Don't forget "C. Anary Singer".

  44. 44
    Posted by dalio | January 18, 2012 at 11:50 AM

    Speak truth to power, brother

    -r. dalio

  45. 45
    Posted by PermaGuestII | January 18, 2012 at 11:58 AM

    He's attempting to give a greater degree of granularity to his analysis of the situation.

  46. 46
    Posted by Sgt Joe Friday | January 18, 2012 at 12:00 PM

    Note to 4th person being sought. Delete your Facebook profile, stop tweeting pictures of your trophy wife, exchange the Maserati for a simple S-Class, pull your kid out of the Ethical Culture Fieldston School, rent out the Hampton's House, don't show up for the MOMA board meeting this week, and for God's sake cancel your table at Per Se! You have to go deep underground man! Maybe the Four Seasons in Nevis – they will never find you there.

  47. 47
    Posted by early_hominid | January 18, 2012 at 12:07 PM

    It is, but it's not just a Greek thing.

    – (soon to be former) Capt. Schettino

  48. 48
    Posted by Just Hablarin' | January 18, 2012 at 12:13 PM

    You mean "vato".

  49. 49
    Posted by dude who knows sam | January 18, 2012 at 12:27 PM

    Sam is actually a really good dude. I know Matt won't agree, but I think historically the line between right and wrong to get "edge" was very difficult to see. I am glad I wasn't in the shoes of a PM under tremendous pressure to deliver Alpha.

  50. 50
    Posted by FKApmco | January 18, 2012 at 12:31 PM

    At the end of the day Perma we need to determine whether what is happening represents a cyclical or secular shift because if it's secular then it's a pretty powerful statement that a tipping point has been reached and what were formerly episodic events have become the new new and will lead to a reduction in the hedge fund industry's wallet share which can only mean that their ability to generate greater long-term sustainable returns has been irreparably harmed.

    -gal who's been listening to way too many earnings calls lately.

  51. 51
    Posted by Guest | January 18, 2012 at 12:45 PM

    Speaking of tennis, am I the only one that would like to see Federer bitch slap (literally) that rat bastard Nadal at the Aussie Open?

  52. 52
    Posted by Guest | January 18, 2012 at 12:46 PM

    If he's driving a Maserati he's a douche bag and I hope he is arrested pronto.

  53. 53
    Posted by VonSloneker | January 18, 2012 at 12:54 PM

    Closeted?

    -Buddy "Alphonse" Fletcher

  54. 54
    Posted by Unsilent Majority | January 18, 2012 at 1:15 PM

    Gentlemen, Do you concur?

  55. 55
    Posted by PermaGuestII | January 18, 2012 at 1:41 PM

    But isn't this the new normal across the spectrum in the current risk on/risk off environment?

  56. 56
    Posted by Guest | January 18, 2012 at 1:56 PM

    Examine your motives picking the two sex offenders.

  57. 57
    Posted by FKApmco | January 18, 2012 at 1:59 PM

    Perhaps. My take on this is that the only salient point is that the macro uncertainty that has dominated the securities market in the recent past still remains unresolved, primarily because of the overhand of the Euro Zone crisis.

  58. 58
    Posted by Fourth Person | January 18, 2012 at 2:02 PM

    Y-y-you mean…FP III has to go…public? Is there no other way?

  59. 59
    Posted by Hugh Jorgen | January 18, 2012 at 3:09 PM

    are you ready for this??? huh…. are you?????…. so here we go: "Having a factual correlation analysis run on you is the NKI" – was that awesome or what?

  60. 60
    Posted by wahoo | January 18, 2012 at 4:06 PM

    Judging by your comment I bet you've got a face like a drive-in movie theatre and you dig a lot.

  61. 61
    Posted by PermaGuestII | January 18, 2012 at 4:11 PM

    Don't disregard MENA tensions and the unusual delta between dated Brent and WTI as contributors to atypical performance on a total return basis.

  62. 62
    Posted by dude who knows sam | January 18, 2012 at 4:34 PM

    Sam is actually a good dude. I can imagine a lot of us would have crossed this line if put in a similar situation.

  63. 63
    Posted by AlsoNotSam | January 18, 2012 at 4:43 PM

    Hi Sam. Yup you're right. Given the right motivation we're all one threat away from "crossing the line." In the parlance of our times…

    - Dude who abides

  64. 64
    Posted by VonSloneker | January 18, 2012 at 4:55 PM

    I would like Nadal to take him apart in straights…then when he goes to shake his hand tell him "Sampras in his prime would have sent you [Fed] home in a body bag." More than that, I'd like to know there will be an American, who isn't a Williams sister, still around by the quarters.

    - J. Courier

  65. 65
    Posted by FKApmco | January 18, 2012 at 5:27 PM

    Sorry P but I have to disagree with you. MENA, Brent and WTI are not sophisticated enough measures…I would even call them crude.

  66. 66
    Posted by Whitey Bulger | January 18, 2012 at 5:50 PM

    Agree!

  67. 67
    Posted by Yeah right | January 18, 2012 at 7:34 PM

    Surprising that Sam would do this, considering his 'religiousity'.

  68. 68
    Posted by bguyen | January 19, 2012 at 4:11 AM

    both!

  69. 69
    Posted by bguyen | January 19, 2012 at 4:16 AM

    Thought MF global sucked, love the Jints "jelling in a timely fashion" RISK ON!

  70. 70
    Posted by guest | January 19, 2012 at 8:10 AM

    forehead, dude. forehead. but at least they let him out of the cage now.

  71. 71
    Posted by Guest | January 20, 2012 at 5:47 AM

    http://www.zewp.com/dump/thumblist.php?show=fucky…

    Safe, perhaps not for work, but then your comment wasn't either. It's just my favorite fuck yeah gif. (no nudity, sorry.)

  72. 72
    Posted by Guest | January 20, 2012 at 6:03 AM

    Seriously, you don't think the Feds are on a bit of a witch hunt with the 2012 elections coming up and the lame OWS protests? Where else is Barry going to pick up votes other than the OWS idiots, Greenies cheering the "death" of Keystone XL, three years of UI benefits losers, "bankster corruption" idiots, and mortgage cramdown beneficieries?

    If you think your profession is filthy and it makes you uncomfortable, then let Bess or other honorable ournalists know about it. F*ck's sake, I weep for this country sometimes.

  73. 73
    Posted by cheap bookmarking service | September 24, 2012 at 11:11 AM

    yyJ3VZ Thanks a lot for the article post.Really looking forward to read more. Fantastic.

  74. 74
    Posted by web design sydney | September 27, 2012 at 8:28 AM

    I loved your post.Much thanks again.

  75. 75
    Posted by top 10 web hosting | September 28, 2012 at 12:20 PM

    I cannot thank you enough for the blog article. Really Great.

  76. 76
    Posted by oil change ottawa | September 28, 2012 at 1:15 PM

    Enjoyed every bit of your blog.Really looking forward to read more. Awesome.

  77. 77
    Posted by Buy Instagram Likes | September 28, 2012 at 3:43 PM

    wow, awesome article.Really thank you! Really Great.

  78. 78
    Posted by dog training bradenton | September 28, 2012 at 6:38 PM

    Thanks so much for the blog.Thanks Again. Much obliged.

  79. 79
    Posted by We Care India | September 28, 2012 at 8:20 PM

    Wow, great blog.Thanks Again. Really Cool.

  80. 80
    Posted by Duelling Pianos UK | September 29, 2012 at 4:55 AM

    Very neat article post. Keep writing.

  81. 81
    Posted by Sasha Grey | September 29, 2012 at 11:36 AM

    Wow, great post.Thanks Again. Really Great.

  82. 82
    Posted by click here | September 30, 2012 at 8:00 AM

    A big thank you for your article. Keep writing.

  83. 83
    Posted by diamant | October 1, 2012 at 8:12 AM

    Very good article post. Great.

  84. 84
    Posted by Homes for Sale Indianapolis IN | October 1, 2012 at 10:35 AM

    I think this is a real great article.Really looking forward to read more. Much obliged.

  85. 85
    Posted by dentist columbus | October 2, 2012 at 12:52 PM

    Really appreciate you sharing this blog post.Really thank you!

  86. 86
    Posted by self hypnosis audio | October 2, 2012 at 6:46 PM

    I loved your article.Thanks Again. Much obliged.

  87. 87
    Posted by bimbo hypnosis | October 2, 2012 at 8:41 PM

    Really enjoyed this blog post. Will read on…

  88. 88
    Posted by buy instagram followers | October 2, 2012 at 8:51 PM

    Awesome blog.Really thank you! Cool.

  89. 89
    Posted by False Eyelashes | October 3, 2012 at 2:30 AM

    Enjoyed every bit of your blog post.Really thank you! Cool.

  90. 90
    Posted by bp blog | October 3, 2012 at 4:53 AM

    Great, thanks for sharing this blog.Really looking forward to read more. Cool.

  91. 91
    Posted by boston drug and alcohol rehab | October 3, 2012 at 8:54 AM

    Say, you got a nice article.Thanks Again. Want more.

  92. 92
    Posted by zija | October 4, 2012 at 4:04 AM

    Really enjoyed this article post.Really looking forward to read more. Awesome.

  93. 93
    Posted by Arizona cash for cars | October 4, 2012 at 4:42 AM

    Great blog.Really looking forward to read more. Cool.

  94. 94
    Posted by seattle locksmith | October 4, 2012 at 10:04 AM

    Im obliged for the post. Want more.

  95. 95
    Posted by Buy Instagram Likes | October 4, 2012 at 12:02 PM

    Very informative post.

  96. 96
    Posted by Commission Infusion review | October 4, 2012 at 4:08 PM

    wow, awesome article post.Really looking forward to read more.

  97. 97
    Posted by bridal cakes sydney | October 4, 2012 at 4:59 PM

    I really enjoy the blog article.Really looking forward to read more. Fantastic.

  98. 98
    Posted by hair transplant virginia | October 4, 2012 at 10:15 PM

    Appreciate you sharing, great blog. Much obliged.

  99. 99
    Posted by buy instagram followers | October 5, 2012 at 7:24 AM

    Thank you for your article post.Thanks Again. Will read on…

  100. 100
    Posted by best vpn | October 5, 2012 at 9:53 AM

    Thanks for sharing, this is a fantastic blog post.Much thanks again.

  101. 101
    Posted by best cheap web hosting | October 5, 2012 at 10:38 AM

    This is one awesome blog article.Much thanks again. Cool.

  102. 102
    Posted by news | October 5, 2012 at 3:03 PM

    Really appreciate you sharing this post.

  103. 103
    Posted by training a dog | October 5, 2012 at 6:45 PM

    Hey, thanks for the article post.Really thank you! Cool.

  104. 104
    Posted by unique party favors | October 8, 2012 at 8:11 AM

    Major thankies for the article post.Thanks Again. Will read on…

  105. 105
    Posted by VPS Server | October 8, 2012 at 5:41 PM

    Really enjoyed this article.Thanks Again. Keep writing.

  106. 106
    Posted by daniel kertcher | October 8, 2012 at 7:24 PM

    Thank you ever so for you blog.Really thank you! Great.

  107. 107
    Posted by indianapolis locksmith | October 9, 2012 at 9:38 AM

    I cannot thank you enough for the blog article.Much thanks again. Really Cool.

  108. 108
    Posted by Read More | October 9, 2012 at 10:46 AM

    Very good article post.Really looking forward to read more. Cool.

  109. 109
    Posted by tax services indianapolis | October 9, 2012 at 11:58 AM

    Very neat article. Keep writing.

  110. 110
    Posted by Free photo hosting | October 9, 2012 at 3:39 PM

    A round of applause for your blog post.Really looking forward to read more. Keep writing.

  111. 111
    Posted by buy twitter followers | October 9, 2012 at 7:41 PM

    Thank you for your article.Really thank you! Awesome.

  112. 112
    Posted by orthodontics | October 10, 2012 at 2:43 AM

    I truly appreciate this post.Thanks Again. Really Great.

  113. 113
    Posted by solar powered attic fan | October 10, 2012 at 11:06 AM

    I really like and appreciate your blog article.Really looking forward to read more. Much obliged.

  114. 114
    Posted by Anal toys | October 10, 2012 at 3:10 PM

    Thank you ever so for you blog.Much thanks again. Want more.

  115. 115
    Posted by lipo 6 | October 10, 2012 at 3:37 PM

    Muchos Gracias for your blog post. Awesome.

  116. 116
    Posted by how to finger video | October 11, 2012 at 12:39 AM

    Muchos Gracias for your blog.Really thank you! Keep writing.

  117. 117
    Posted by Free Image Hosting | October 11, 2012 at 1:17 AM

    Muchos Gracias for your blog article.Really looking forward to read more. Much obliged.

  118. 118
    Posted by Fleshlight | October 11, 2012 at 2:59 AM

    A big thank you for your blog article. Really Great.

  119. 119
    Posted by Franken Nachrichten | October 11, 2012 at 8:33 AM

    Very neat post.Really thank you! Awesome.

  120. 120
    Posted by Biometics | October 11, 2012 at 10:46 AM

    Wow, great blog post.Much thanks again. Keep writing.

  121. 121
    Posted by Biometics | October 11, 2012 at 11:42 AM

    Looking forward to reading more. Great blog post.Really looking forward to read more. Will read on…

  122. 122
    Posted by Peter Francis-Macrae | October 12, 2012 at 6:35 AM

    Really enjoyed this blog post.Thanks Again. Much obliged.

  123. 123
    Posted by Peter Francis-Macrae | October 12, 2012 at 11:50 AM

    Thank you ever so for you article.Much thanks again. Want more.

  124. 124
    Posted by Domestic Cleaner Quotes | October 12, 2012 at 2:25 PM

    Say, you got a nice blog.Really thank you! Much obliged.

  125. 125
    Posted by Peter Francis-Macrae | October 12, 2012 at 6:57 PM

    Im grateful for the article.Much thanks again. Great.

  126. 126
    Posted by Shoulder Bags | October 12, 2012 at 10:30 PM

    Thanks a lot for the blog article.Really thank you! Much obliged.

  127. 127
    Posted by authentic handbags | October 12, 2012 at 10:34 PM

    Enjoyed every bit of your blog post.Really looking forward to read more. Awesome.

  128. 128
    Posted by indianapolis brick | October 13, 2012 at 1:28 AM

    I value the article post.Really looking forward to read more. Want more.

  129. 129
    Posted by dog groomers indianapolis | October 13, 2012 at 2:42 AM

    Thanks again for the blog post.Thanks Again. Really Cool.

  130. 130
    Posted by misoprostol | October 15, 2012 at 5:47 AM

    Im grateful for the article.Really thank you! Will read on…

  131. 131
    Posted by Wings Pittsburgh PA | October 15, 2012 at 11:13 AM

    Say, you got a nice article post.Really thank you! Will read on…

  132. 132
    Posted by fruit ninja | October 15, 2012 at 1:05 PM

    Thank you ever so for you blog post.Really thank you! Fantastic.

  133. 133
    Posted by how to stop aging | October 15, 2012 at 4:49 PM

    Looking forward to reading more. Great blog. Want more.

  134. 134
    Posted by webdesign | October 15, 2012 at 7:22 PM

    Thank you ever so for you post.Really thank you!

  135. 135
    Posted by best physician assistant schools | October 16, 2012 at 8:49 AM

    Major thanks for the blog.

  136. 136
    Posted by Nollywood Nigerian Movies | October 16, 2012 at 10:25 PM

    Great article. Will read on…