If You Need Preet Bharara, He'll Be In His Office Screaming Into A Pillow

It's like the Supreme Court is trying to hurt him/discredit his life's work.
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That, or poking seven Supreme Court justices-shaped voodoo dolls.

The Supreme Court on Monday refused to review an appeals court decision that made it harder to prosecute insider trading and threatens to undermine a number of convictions. As is their custom, the justices gave no reasons for turning down the case. The decision dealt a blow to Preet Bharara, the United States attorney in Manhattan, whose office oversaw a sweeping crackdown on insider trading in the $3 trillion hedge fund industry. The high court’s decision not to hear the case is a final vindication for Todd Newman and Anthony Chiasson, two former hedge fund managers who were prosecuted by Mr. Bharara’s office and convicted in December 2012. The Justice Department was seeking review of an appellate decision last year that overturned their insider trading convictions. The court’s decision could also jeopardize a number of other insider trading convictions secured by Mr. Bharara’s office, including one against Michael Steinberg, a former trader who worked for Steven A. Cohen, the billionaire investor.

Speaking of Steinberg AKA Mr. Bake Sale, he'd like his conviction overturned by end of business today, thank you very much.

Lawyers for Mr. Chiasson and Mr. Newman issued statements applauding the Supreme Court’s decision. A lawyer for Mr. Steinberg said the court’s decision should require that his client’s “conviction be thrown out as well.”

Supreme Court Denies Request to Hear Insider Trading Case [Dealbook]
Supreme Court derails Bharara’s Wall St. crusade [NYP]

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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]