Level Global

  • Red = Jail! Green = Not Jail!


    Hedge Fund Managers Didn’t Know They Were Paying For Their Inside Information

    You’re only guilty of criminal insider trading, in America,1 if: you trade on information that is material and nonpublic, and some other stuff. The other stuff is mostly stuff that only a lawyer could love, but man do they love it. It consists most importantly of the rule that the person who gives you the […]

    / Jun 19, 2013 at 10:15 AM
  • anthonychiasson

    Hedge Funds

    The Next Defendant To Chew Gum In U.S. District Judge Richard Sullivan’s Courtroom Gets An Extra 6 Months

    Anthony Chiasson, the co-founder of the hedge fund Level Global Investors, was sentenced to 6.5 years in prison today for illegal trading in two tech stocks…Throughout the hearing, Chiasson sat surrounded by his lawyers, chewing gum furiously. “What I keep coming back to is this crime, these crimes, were committed over a long period of […]

    / May 13, 2013 at 3:20 PM
  • If I were better at Excel this would be easier to update. Scatterplots get fiddly fast.


    Convicted Insider Traders Probably Regretting Association With Group Calling Itself “Fight Club”

    It gives me no particular pleasure to update the ol’ insider trading sentencing chart every time a new person is convicted of insider trading, but I view it as a public service for the less instinctually law-abiding among our readers and here we are: After three days of deliberations, a jury convicted Anthony Chiasson, a […]

    / Dec 17, 2012 at 6:39 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
  • 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

    Bonus Watch ’11: Level Global

    It probably shouldn’t come as much of a shock that the employees of a business that’s shutting down will most likely not be receiving bonuses this year but we can still allow them their pain.

    / Feb 14, 2011 at 3:45 PM
  • News

    Level Global Has An Interesting Definition Of The Word “Integrity,” Notion Of The Age At Which Person Can Still Be Put In A “Time Out”

    As we reported earlier, David Ganek’s Level Global, one of three firms to be raided by the FBI last November as part of their insider trading investigation, is shutting down (prior to that, we shared that the firm had received $750 million in redemption requests and that potential liquidation had been discussed with investors). This […]

    / Feb 11, 2011 at 11:37 AM
  • News

    Hedge Fund Level Global Is Shutting Down

    The following letter was just sent to investors.

    / Feb 11, 2011 at 10:10 AM
  • News

    Level Global Has Received $750 Million In Redemption Requests

    David Ganek’s Level Global, one of the three hedge funds raided last fall as part of the Feds’ insider trading case, has received approximately $750 million in redemption requests, according to people familiar with the matter.

    / Feb 11, 2011 at 7:15 AM
  • News

    Level Global: No Snitches Work At This Fund

    A few weeks before Christmas, documents were released by the government revealing that at least one of the cooperating witnesses in its Insider Trading Fest(ivus) was currently employed at a hedge fund. Some people said the CW was with Level Global. The firm assured clients earlier this week that after conducting “extensive internal factual correlation […]

    / Jan 6, 2011 at 2:00 PM
  • News

    Level Global: Nothing Is Fucked

    “Contrary to speculation in the media, redemptions have been immaterial — amounting to less than 10 percent of our capital base,” the fund said in a letter to clients. “As you can appreciate, we simply cannot respond to every rumor circulating in the media,” Level Global continued. “We can, however, reiterate what we have already […]

    / Dec 17, 2010 at 10:20 AM
  • News

    Level Global Will Pick Up The Tab On Insider Trading Investigation Legal Fees

    Hilarious as it would be to stick investors with the bill, that’s not the kind of hedge fund we’re dealing with here. Re: Level Global Investors, L.T.D. Dear Investors: Understandably, many of you have inquired into the legal costs and expenses we are incurring as a result of the U.S. Attorney’s Office investigation into the […]

    / Dec 17, 2010 at 9:51 AM
  • News

    Charlie Gasparino: Government’s Cooperating Witness Is At Level Global

    Additionally, the firm is said to be fielding “massive redemption requests,” with Cornell University asking for its money back. The $4 billion Greenwich-based Level Global, which has not been charged with any wrongdoing was one of the first firms to be raided by the FBI, and was founded in 2003 by SAC alum David Ganek.

    / Dec 16, 2010 at 2:42 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

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