Tuesday, November 20, 2012

Newman, Chiasson Insider Trading Trial Starts

The insider trading trial of Todd Newman, of Diamondback, and Anthony Chiasson, of Level Global hedge fund, has started and it looks like this case is not your typical insider trading story.

It has become almost a soap opera with Jesse Tortora, the key witness whose been telling tales of trench warfare among hedge funds.

One of the allegations is that Newman arranged for $175,000 to be paid to a stock analyst's wife in exchange for insider information about Dell.

And to make things interesting, Tortora, has pled guilty of the act, with defense stating his motive was simple hatred against his former boss.

According to records, there is a recorded phone exchange between Tortora and Newman that could support that defense. But for now, we'll have to wait how the jury will believe the stories as we give you more updates regarding this case.