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

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

(hidden for your protection)
Show all comments

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

  1. Gill Grunt says:

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

  2. thomas malthus says:

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

  3. Kegels123 says:

    Shall we shag now or shag later?

    -Hedge Fund Mystery Man

  4. An Apologist says:

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

  5. VonSloneker says:

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

    – G. Papandreou

  6. The Biz Speak Guy says:

    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?

    • Alt_EST says:

      Nouns ∧ Verbs = Heinous Business Speak

    • Guest says:

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

    • Abovethelaw says:

      Your getting in the weeds there..

      • PermaGuestII says:

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

        • FKApmco says:

          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.

          • PermaGuestII says:

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

          • FKApmco says:

            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.

          • PermaGuestII says:

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

          • FKApmco says:

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

    • trojan_ says:

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

    • dalio says:

      Speak truth to power, brother

      -r. dalio

    • Unsilent Majority says:

      Gentlemen, Do you concur?

  7. Mexi_Cant says:

    Homies be goin to the pennnnnnnetentary.

  8. Guest says:

    What year did they graduate from Harvard?

  9. Lynn Tilton says:

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

  10. AIG Quant via LEH says:

    Spyro the dragon?

  11. mourning becomes says:

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

  12. Inquisitive Soul says:

    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.

    • Guest says:

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

      -Tip Van Winkle

    • Guest says:

      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?

      • VonSloneker says:

        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

    • bguyen says:

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

  13. VonSloneker says:

    …the call is coming from inside the house

    -Sgt. Sacker

  14. Quant in Oklahoma says:

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

  15. The Truth says:

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

  16. guest says:

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

  17. serious question says:

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

  18. guest says:

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

  19. HR Question says:

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

    Moletta Johnson
    Ratibulous Pefferfink
    Snitchelsby Grossman

  20. Sgt Joe Friday says:

    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.

  21. dude who knows sam says:

    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.

  22. Hugh Jorgen says:

    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?

  23. dude who knows sam says:

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

    • AlsoNotSam says:

      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

    • Yeah right says:

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

      • Guest says:

        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.

  24. Whitey Bulger says:


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

  26. I loved your post.Much thanks again.

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

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

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

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

  31. Wow, great blog.Thanks Again. Really Cool.

  32. Very neat article post. Keep writing.

  33. Sasha Grey says:

    Wow, great post.Thanks Again. Really Great.

  34. click here says:

    A big thank you for your article. Keep writing.

  35. diamant says:

    Very good article post. Great.

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

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

  38. I loved your article.Thanks Again. Much obliged.

  39. Really enjoyed this blog post. Will read on…

  40. Awesome blog.Really thank you! Cool.

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

  42. bp blog says:

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

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

  44. zija says:

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

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

  46. Im obliged for the post. Want more.

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

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

  49. Appreciate you sharing, great blog. Much obliged.

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

  51. best vpn says:

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

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

  53. news says:

    Really appreciate you sharing this post.

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

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

  56. VPS Server says:

    Really enjoyed this article.Thanks Again. Keep writing.

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

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

  59. Read More says:

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

  60. Very neat article. Keep writing.

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

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

  63. orthodontics says:

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

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

  65. Anal toys says:

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

  66. lipo 6 says:

    Muchos Gracias for your blog post. Awesome.

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

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

  69. Fleshlight says:

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

  70. Very neat post.Really thank you! Awesome.

  71. Biometics says:

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

  72. Biometics says:

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

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

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

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

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

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

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

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

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

  81. misoprostol says:

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

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

  83. fruit ninja says:

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

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

  85. webdesign says:

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

  86. Great article. Will read on…