• Can't find any pictures of Tortora so you get this. Doesn't really work with the story because it's the stepson that is evil, not the stepfather, but 6:1, etc. Also, please say "Daddy's home and he's NOT very happy" to yourself and tell me you don't laugh.


    Hundreds Of Thousands In Gambling Losses Not The Most Degenerate-y Line On Ex-Trader’s Resumé

    The 37-year-old Tortora, testifying for the third day in the case against SAC top money man Michael Steinberg, said his big year at now defunct hedge fund Diamondback was 2008, when his compensation hit $2.5 million. He only made $800,000 in 2009 and left the firm that was founded by former SAC portfolio managers early […]

    / Nov 25, 2013 at 4:21 PM
  • toddnewman


    Only Way To Get A Gold Star From Hedge Fund Manager Accused Of Insider Trading Was By Bringing Him Illegal Info, Says Underling

    Alternatively, if you made the mistake of approaching Todd Newman with information that was obtained through legitimate means, 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.

    / Nov 16, 2012 at 3:20 PM
  • News

    Accused Insider Traders Already Guilty Of One Thing

    Being the sort of cheeseballs who call their adult “clique of friends ‘the Fight Club,’ named after the Brad Pitt movie.” [Bloomberg, earlier]

    / Nov 14, 2012 at 6:30 PM
  • typicalclubnight


    Members Of Insider Trading “Club” Were Good At Obtaining Material Non-Public Information, Not So Good At Playing It Cool On Conversations Recorded By The Feds

    Later this week, Anthony Chiasson, a Level Global co-founder, and Todd Newman, a former Diamondback portfolio manager, will go to trial in Federal Court for allegedly making $67 million in ill-gotten gains, based on inside information they obtained about Nvidia Corp and Dell Inc. According to U.S. Attorney Preet Bharara, Chiasson and Newman, who’ve both pleaded not guilty, were able to rack up all their profits by teaming up with a bunch of friends and forming an insider trading club, which is a lot like a book club or fight club in that they took roll, traded canapé duties, and drank Pinot Grigio, but different in that instead of discussing The Art Of Fielding or punching each other in the face, they spent every Monday night from 7 to 9 sharing material non-public information with each other.

    “This case describes a tight-knit circle of greed on the part of professionals willing to traffic in confidential information,” Bharara said when the charges were announced in January. “It was a circle of friends who essentially formed a criminal club, whose purpose was profit and whose members regularly bartered inside information.”

    In the beginning, when the club was first formed, there was a spirit of camaraderie, as the club members happily traded tips for everyone’s mutual benefit. Unfortunately, things started to break down when some people agreed to cooperate with the government by recording their friends admitting wrongdoing, in exchange for leniency. Former Diamondback analyst Jesse Tortora, for instance, gave fellow club member Danny Kuo a call at the direction of the FBI on December 1, 2010, a conversation that Chiasson and Newman’s lawyers are trying to use as evidence that Tortora, who will be testifying against them, lacks credibility, based on the fact that when asked by Kuo if his phone was being tapped, Tortora didn’t say “Yup! Helping the Feds build a case against you, actually.”

    “What’s happening, man?” Tortora asked during the call, according to a transcript prosecutors submitted to the court.

    “Dude, is your phone tapped?” Kuo replied.

    “Wait, is the phone tapped?” Tortora asked, adding, “Why do you ask that?”

    Despite losing major points for repeating the question– you never repeat the question!– and the extremely unconvincing “Oh, why do you ask” attempt to act natural and not like he was working for the government, Tortora ultimately recovered.

    After Kuo and Tortora discussed defense strategy to explain their trades were made after legitimate research, Kuo concluded the call with a final warning to Tortora about making future calls from a personal telephone, according to the transcript. “I would seriously invest in some quarters, and start calling from 7-Elevens,” Kuo said.

    Hedge Fund Founder Faces Jury as FBI Raids Yield Trial [Bloomberg]

    / Nov 7, 2012 at 1:39 PM
  • Hedge Funds

    Diamondback Capital Has Some Exciting News To Share

    Diamondback’s founders, Richard Schimel and Larry Sapanski, said Monday in a letter to clients that the investment firm’s external lawyers had conducted an “extensive review” of trading records and communications. As part of the review, lawyers with Wilmer Cutler Pickering Hale & Dorr LLP sifted through millions of emails and instant messages, analyzed thousands of […]

    / Jan 23, 2012 at 5:06 PM
  • insider-trading

    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 […]

    / Jan 18, 2012 at 9:41 AM
  • News

    Diamondback Investors Pull At Least $1 Billion

    The $1 billion dollar figure was tallied up prior to today’s 5PM deadline to withdraw, so it may be higher. On the bright side, it could’ve been worse, but preventative measures- ‘around 29% of its $5.8 billion in capital is in multi-year lock-ups’- were in place. [WSJ]

    / Feb 15, 2011 at 5:42 PM
  • News

    Diamondback Capital Investors Didn’t Sweat FBI Raid

    Unlike certain other hedge fund investors (no names: FrontPoint) Diamondback clients have balls.

    / Feb 8, 2011 at 5:09 PM
  • News

    Potential Collateral Damage From Insider Trading Fest(ivus) The Feds Probably Didn’t Stop To Think About

    At Zayna’s Metro Cafe, a New York-style deli that opened earlier this year in Stamford, Chef Aly Allam says he hopes things go back to normal for Diamondback, where the traders are such regular customers he often puts a Diamondback Special on the menu. “They are some of my biggest customers, if they close that’s […]

    / Dec 3, 2010 at 4:07 PM
  • News

    Former Government Official-cum-Diamondback Employee Is Good For Nothing

    “Executives at Diamondback, where FBI agents had ordered employees to put their hands in the air as they entered the premises, also were said to have been caught off guard — especially so because Peter Derby, a former top SEC official, is an employee of the fund.” [Reuters]

    / Nov 30, 2010 at 3:18 PM
  • News

    Diamondback Capital Says The FBI Is NOT After Them, Just One Of Their Employees

    Great news, Diamondback investors: your money has (mostly) not been tainted.

    / Nov 29, 2010 at 5:57 PM
  • News

    “Low-Level” Goldman Employee Linked To Insider Trading Investigation Via Diamondback?

    According to Charlie Gasparino, at least one of the aforementioned “low-level” Goldman employees rumored to be tied to the government’s Insider Trading Fest(ivus) 2010 “got roped into the investigation by ‘some sort of association’ with Diamondback Capital Management LLC.” Still unclear: how low we’re actually talking (e.g. first years, summer interns, etc).

    / Nov 23, 2010 at 4:01 PM
  • News

    Diamondback Capital Has Done Right By Its Clients

    Anyone thinking of making any sudden moves should remember this.

    / Nov 23, 2010 at 11:41 AM
  • Rich-Wendy-Schimel-by-Jacobs-Cure


    FBI’s Circling Of SAC Getting Personal

    Ed’s note: A previous version of this story included a picture of a woman incorrectly identified as Wendy Cohen Schimel. As you may have heard, the US government is putting on a holiday spectacular this year called Insider Trading Fest(ivus) 2010. Capping a three year investigation, charges that “could ensnare consultants, investment bankers, hedge-fund and […]

    / Nov 23, 2010 at 10:53 AM
  • News

    Diamondback: We Are All Good

    Earlier today, Diamondback Capital was the second of god knows how many firms to be raided by the FBI as part of its Insider Trading Fest(ivus) 2010. The hedge fund had nothing to say about the matter at the time but they’ve just issues a statement letting every who was worried know that nothing is […]

    / Nov 22, 2010 at 3:39 PM
  • News

    WSJ: FBI Raids Level Global And Diamondback Capital

    Greenwich-based Level Global, which manages around $4 billion, was founded in 2003 by former SAC Capital trader David Ganek. Stamford-based Diamondback, which was founded in 2005 and manages over $5 billion, is headed by SAC alum Richard Schimel and other former SAC managers). Diamondback has not had anything to say publicly about the matter, while […]

    / Nov 22, 2010 at 12:32 PM

Our Sites

  • Above the Law
  • How Appealing
  • ATL Redline
  • Breaking Defense
  • Breaking Energy
  • Breaking Gov
  • Dealbreaker
  • Fashonista