Meet The 7 People That Were Charged Today In The FBI’s Insider Trading Probe

Preet

[credit provider=”BloombergTV”]

The FBI finally made a move in a mounting insider-trading investigation with three early-morning arrests.News of the probe has been leaked in the press the last two years, and those who have been following the headlines can see familiar names and financial firms in the news today—Level Global, Diamondback Capital, SAC Capital, etc.

Overall, federal officials have charged seven individuals with securities fraud. Of the seven, three were arrested, one surrendered and three have been informants that are cooperating in the case.

So who are these seven and what exactly are the FBI claiming they each did? Officials will publicize the information today in a press conference at 1 p.m., but we’ve already gone through the court complaint and various media reports to find out.

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[slide
permalink=”anthony-chiasson-former-co-founder-of-hedge-fund-level-global-1″
title=”Anthony Chiasson, Former co-founder of hedge fund Level Global”
content=”Status: Surrendered to FBI

Allegations: Chiasson co-founded Level Global with David Ganek and headed up research at the hedge fund, which closed in 2011 amid the FBI investigation. At Level, the government claims, Chiasson received information from Spyridon ‘Sam’ Adondakis on Dell and executed trades based on the information that result in $54 million in profits in 2008 for the hedge fund.

Source: WSJ, Federal Complaint
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[slide
permalink=”john-horvath-worked-at-sigma-capital-a-subsidiary-of-sac-capital-2″
title=”John Horvath, worked at Sigma Capital, a subsidiary of SAC Capital”
content=”Status: Arrested

Allegations: The complaint states that Horvath conspired with Todd Newman at Diamondback Capital and Danny Kuo at Whittier Trust and exchanged non-public information on Dell in 2008.

Source: Federal Complaint
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[slide
permalink=”todd-newman-former-trader-at-diamondback-capital-3″
title=”Todd Newman, Former trader at Diamondback Capital”
content=”Status: Arrested

Allegations: The complaint states that Newman conspired with John Horvath at Sigma Capital and Danny Kuo at Whittier Trust and exchanged non-public information on Dell in 2008. At Diamondback, Newman supervised Tortora–who received inside information from Goyal. Diamondback allegedly made $3.8 million in profits in 2008 based off Dell inside information.

Source: Federal Complaint
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[slide
permalink=”danny-kuo-vp-and-fund-manager-at-whittier-trust-4″
title=”Danny Kuo, VP and fund manager at Whittier Trust”
content=”Status: Arrested

Allegations: The complaint states that Kuo conspired with Todd Newman at Diamondback Capital and John Horvath at Sigma Capital and exchanged non-public information on Dell in 2008.

Source: DealBook, Federal Complaint
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[slide
permalink=”sandeep-sandy-goyal-former-tech-analyst-at-neuberger-berman-and-former-employee-of-dell-5″
title=”Sandeep “Sandy” Goyal, Former tech analyst at Neuberger Berman and former employee of Dell”
content=”Status: Plead guilty and cooperating; Goyal was an informant in the probe

Allegations: The complaint claims that Goyal received information from an insider at Dell, and then passed it on to Jesse Tortora, who passed it on to the network of Newman, Horvath, Adondakis and Kuo. He was compensated over $100,000 at different times for his information.

Source: Federal Complaint, Bloomberg
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[slide
permalink=”spyridon-sam-adondakis-former-analyst-at-level-global-6″
title=”Spyridon “Sam” Adondakis, former analyst at Level Global”
content=”Status: Plead guilty and cooperating; Adondakis was in informant in the probe

Allegations: The complaint states that Adondakis received non-public information on Dell and passed it on Chiasson, who was his boss at Level. Chiasson executed the trades on the information and made $54 million in 2008 on Dell.

Source: Federal Complaint
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[slide
permalink=”jesse-tortora-former-analyst-at-diamondback-capital-7″
title=”Jesse Tortora, Former analyst at Diamondback Capital”
content=”Status: Plead guilty and cooperating; Tortora was in informant in the case

Allegations: The complaint states that Tortora received non-public information on Dell earnings in 2008 from Sandeep ‘Sandy’ Goyal and passed it on to Horvath and Kuo. He worked at Diamondback under Horvath, and Diamondback allegedly made $3.8 million in profits in 2008 based off Dell inside information.

Source: Federal Complaint
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[slide
permalink=”many-of-those-charged-worked-at-hedge-funds-8″
title=”Many of those charged worked at hedge funds….”
content=”So here are 10 other hedge funders that fell in trouble with the law >>
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[/slideshow]