Alternatively, if you made the mistake of approaching Todd Newman with information that was obtained through legitimate means, Jesse Tortora claims you’d be on the receiving end of a death stare the first time and a “What did I tell you about coming in here with a trade idea you ‘thoroughly researched’? Get the fuck out of my office and don’t ever waste my time with this garbage again,” on subsequent occasions.
Ex-Diamondback Capital analyst Jesse Tortora testified that the only time he made his “moody” and “verbally abusive” boss happy was by leaking him illicit stock tips. Tortora, 35, told a Manhattan federal-court jury yesterday that his former boss, Todd Newman, benefited from corporate secrets he gleaned from pals. Newman, a former Diamondback money manager, and Anthony Chiasson, co-founder of hedge fund Level Global Investors, are accused of trading on illicit tips obtained by a “corrupt network” of research analysts. Prosecutors claim Newman, 48, and Chiasson, 39, netted more than $60 million in profits by trading illegally in shares of Dell and Nvidia.
Tortora said his already rocky relationship with his boss grew worse after a widespread crackdown on insider trading on Wall Street led to the arrest of Galleon Group co-founder Raj Rajaratnam in 2009. The arrests made it harder to get tips. “Everybody was nervous. Everybody was anxious. People were a little bit reluctant to talk to each other,” he said. With Wall Street trembling in fear, Tortora said he turned to legitimate research, including analysis of publicly available data — but Newman wasn’t impressed. “I got little or no response,” he said of his clean reports. “It was in stark contrast to when I would call him up” with inside tips, he said…Tortora said he quit Diamondback in May 2010 following a shouting match with Newman, who he described as “verbally abusive.” I never knew who he was going to be when I talked to him,” he told the jury.
To review, for those who should find themselves working under Newman in the future: material, non-public information = good. Non-material, public information = “You do not hand in amateur crap like this, do you hear me? Do you understand me? You are scum. I should fire you and burn down your house. I am this close to raping you.”