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Wrongly Convicted Database Record
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Charge: |
Conspricacy to commit Insider Trading (incl. Securities Fraud) |
Sentence: |
6 years 6 months & $5 million fine |
Years Imprisoned: |
1.42 |
Year Crime: |
2008 |
Year Convicted: |
2013 |
Year Cleared: |
2015 |
U.S. State or Country of Crime: |
New York - Federal Case |
County or Region of Crime: |
New York |
City of Crime: |
New York City |
Result: |
Judicially Exonerated |
Summary of Case: |
"Anthony Chiasson, Todd Newman, Michael Steinberg, Jon Horvath, Jesse Tortora, Spyridon Adondakis, Sandeep Goyal, Danny Kuo, and Hyung Lim were codefendants wrongly convicted of conspiring to use inside information to trade in Dell and Nvidia stocks from 2007 to 2009. At the time Newman was a portfolio manager at Diamondback Capital, and Chiasson was a money manager at Level Global Investors. The other seven codefendants were employed by SAC Capital Advisors. The FBI raided Level Global and Diamondback in November 2010, and Newman and Chiasson were subsequently indicted. The six-week jury trial of Newman and Chiasson began on November 7, 2012. After the government finished presenting its case the trial judge denied a motion by Newman and Chiasson on December 6, 2012 for a judgment of acquittal. After they were convicted by the jury on December 17, 2012, Newman was sentenced to 4 years and 6 months in federal prison, payment of $1 million fine, and forfeiture of property worth $737,724. Chiasson was sentenced to serve 6 years and 6 months in federal prison and payment of a $5 million fine. Newman and Chiasson were allowed to remain free on bond pending the outcome of their appeal. On December 10, 2014 the U.S. Second Circuit Court of Appeals ruled that the prosecution did not present sufficient evidence to prove the guilt of Newman and Chiasson beyond a reasonable doubt. The Court's ruling stated: "the government failed to present sufficient evidence that the defendants willfully engaged in substantive insider trading or a conspiracy to commit insider trading in violation of the federal securities laws." The Court held that prosecutors must prove an individual charged with insider trading knew an insider had turned over confidential information for financial gain. On April 16, 2015 the U.S. District Court dismissed the indictments of Chiasson and Newman with prejudice -- which barred the charges from being refiled. On October 4, 2015 the U.S. Supreme Court declined to review the appeals court's ruling. On October 22, 2015 Manhattan U.S. Attorney Preet Bharara filed motions to dismiss the chages against Newman and Chiasson's seven codefendants also convicted of insider trading charges. The dismissals were in response to the U.S. Second Circuit Court of Appeals ruling in USA v. Todd Newman and Anthony Chiasson, No. 13-1837-cr (L), 13-1917-cr (con), (2nd Cir. 12-10-2014), that the prosecution must prove an individual charged with insider trading knew an insider had turned over confidential information for financial gain. Based on the dismissal of the indictments of the individual defendants, on January 26, 2016 U.S. District Judge Shira A. Scheindlin in Manhattan granted a motion by Level Global Investors LP for the Security Exchange Commission to refund a payment of $21.5 million that the SEC and LGI agreed to in April 2013 as a settlement of criminal charges against LGI that a top LGI official and several analysts engaged in repeated insider trading." |
Conviction Caused By: |
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Innocence Proved By: |
"On December 10, 2014 the U.S. Second Circuit Court of Appeals ruled that the prosecution did not present sufficient evidence to convict Todd Newman, a former portfolio manager at Diamondback Capital, and Anthony Chiasson, a former money manager at Level Global Investors. On October 4, 2015 the U.S. Supreme Court declined to review the appeals court's ruling." |
Defendant Aided By: |
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Compensation Awarded: |
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Was Perpetrator Identified? |
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Age When Imprisoned: |
39 |
Age When Released: |
41 |
Sex: |
Male |
Skin/Ethnicity: |
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Information Source 1: |
"USA v. Todd Newman and Anthony Chiasson, No. 13-1837-cr (L), 13-1917-cr (con), (2nd Cir. 12-10-2014) (Vacating convictions and ordering dismissal of indictiment with prejudice)" |
Information Location 1: |
http://www.ca2.uscourts.gov/decisions/isysquery/f040b97d-8ed1-44bf-a76e-5f6b6c946c03/1/doc/13-1837_opn.pdf#xml=http://www.ca2.uscourts.gov/decisions/isysquery/f040b97d-8ed1-44bf-a76e-5f6b6c946c03/1/hilite/ |
Information Source 2: |
"2 hedge fund managers just scored a final victory in an epic 5-year insider-trading case, By Julia La Roche (Staff), Business Insider, October 4, 2015" |
Information Location 2: |
http://www.businessinsider.com/chiasson-and-newman-exonerated-2015-10 |
Information Source 3: |
"USA v. Newman et al, No. 1:12-cr-00121-RJS (U.S. District Court, Southern District of New York (Foley Square)) (Docket last viewed 10-25-2015)" |
Information Location 3: |
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Information Source 4: |
"SEC to refund Level Global Investors after overturned insider-trading charge, By Hazel Bradford, Pensions & Investments, January 26, 2016" |
Information Location 4: |
http://www.pionline.com/article/20160126/ONLINE/160129881/sec-to-refund-level-global-investors-after-overturned-insider-trading-charge |
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Innocents Database Created and Maintained by Hans Sherrer innocents@forejustice.org