Todd Newman

  • News

    Current, Former U.S. Attorneys For The Southern District Of New York Would Like To Respectfully Disagree With The U.S. Court Of Appeals For The Second Circuit

    With all due deference, setting Anthony Chiasson and Todd Newman free looks like total bullshit to Preet Bharara and predecessor Mary Jo White.

    / Dec 15, 2014 at 10:30 AM
  • preetbhararawhiteboard

    News

    Convicted Insider Traders Not Convicted Insider Traders Anymore

    Anthony Chiasson and Todd Newman will be enjoying themselves this evening. Preet Bharara, less so.

    / Dec 10, 2014 at 4:51 PM
  • News

    Appelate Court Judge Wonders If Government Can Win An Insider Trading Case In Front Of A Judge Who Doesn’t Stop The Trial Every 5 Minutes To High Five The Prosecution

    Just seconds after the prosecutor arguing the appeal introduced herself, the judges grilled her about the case and implied that Mr. Bharara’s office steered insider trading trials to Judge Richard J. Sullivan, who oversaw Mr. Chiasson’s and Mr. Newman’s trial and a subsequent case against another trader. The questioning appeared to send a cautionary message […]

    / Apr 22, 2014 at 4:58 PM
  • Does not want to be making this face the next time he walks out of a federal courthouse.

    News

    Insider-Trading Appeal Would Really Shake Things Up In The Vanishingly Small Likelihood It Succeeds

    As you’ve no doubt noticed, a number of hedge fund managers have in recent years been found guilty by a jury of their peers of insider-trading, a nebulous and gray-area-filled offense that some people think perhaps should not be illegal but which, all the same, is, and which conviction of said crime carries with it […]

    / Apr 21, 2014 at 11:20 AM
  • Red = Jail! Green = Not Jail!

    News

    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
  • If I were better at Excel this would be easier to update. Scatterplots get fiddly fast.

    News

    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
  • toddnewman

    News

    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

    News

    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

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