* Chiasson convicted over trades in Dell, Nvidia
* Co-defendant Todd Newman got 4-1/2 years prison
May 7 Federal prosecutors want the co-founder of
hedge fund firm Level Global Investors LP to spend as much as 10
years in prison for insider trading in shares of two technology
The government said in a Manhattan federal court filing that
Anthony Chiasson, who was convicted in December of securities
fraud and conspiracy, should spend 97 to 121 months behind bars.
This is in line with nonbinding federal sentencing
guidelines, prosecutors said in the court papers filed Monday
night. Chiasson, 39, is scheduled to be sentenced on May 13 by
U.S. District Judge Richard Sullivan.
The proposed term is shorter than the roughly 10 to 12-1/2
years recommended in a pre-sentence report by a probation
officer. A 12-1/2 year term would be a record in a U.S. insider
In December, a jury convicted Chiasson of using confidential
information to trade in shares of computer maker Dell Inc
and chipmaker Nvidia Corp ahead of earnings
reports in 2008 and 2009.
Prosecutors said the trades resulted in more than $68
million of illegal profit for Level Global. They said Chiasson
was aware that his research analyst Spyridon "Sam" Adondakis was
getting inside tips, and that he directed Adondakis to create
trading "templates" to conceal how the tips were used.
Adondakis pleaded guilty in January 2012 and testified
against his former boss.
Todd Newman, a Diamondback Capital Management portfolio
manager convicted at Chiasson's trial, was sentenced by Sullivan
on May 2 to 4-1/2 years in prison. Prosecutors had sought up to
Lawyers for Chiasson last month said their client deserves
leniency, given that he has a wife and two children, and has
many charitable endeavors.
The office of U.S. Attorney Preet Bharara in Manhattan did
not immediately respond on Tuesday to a request for comment. A
lawyer for Chiasson was also not immediately available.
Level Global closed in 2011 following an FBI raid, and has
been winding down.
On April 29, the U.S. Securities and Exchange Commission
ordered the Greenwich, Connecticut-based firm to pay $21.5
million to resolve civil fraud charges related to the conduct of
Chiasson and Adondakis.
The case is U.S. v. Chiasson, U.S. District Court, Southern
District of New York, No. 12-cr-00121.