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Only Way To Get A Gold Star From Hedge Fund Manager Accused Of Insider Trading Was By Bringing Him Illegal Info, Says UnderlingBy Bess Levin
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.”