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This just in from the Bloomberg, Anthony Chiasson, founder of defunct hedge fund Level Global, and Todd Newman, a former portfolio manager at Diamondback Capital, have been found guilty of insider trading.Newman and Chiasson are said to have made $70 million on illegal tips after using an “expert network” firm called Primary Global Research that connected employees of public companies with buy-side analysts.
An alumnus of Steve Cohen’s SAC Capital, Chiasson was arrested by the FBI in January of this year. That same day, seven people (including Newman) from three different hedge funds were charged with insider trading on shares of Dell and Nvidia, according to a press release from the U.S. Department of Justice.
This has all been a part of the Department of Justice’s crackdown on insider trading, and this case especially was described as a “a tight-knit circle of greed”. Six other traders involved with the case pleaded guilty and cooperated with authorities, according to the NYT.