Seven people have been charged with insider trading counts including securities fraud and conspiracy in Manhattan federal court today reports Bloomberg. The charges are the latest stemming from the five-year insider trading investigation led in tandem by the FBI and the Justice Department.
Those charged include Level Global Investors co-founder Anthony Chiasson, who reportedly turned himself in. Todd Newman, formerly of Diamondback Capital was also charged. He was arrested by the FBI in Boston. Ex-SAC Capital Advisors employee Jon Horvath was charged as well. He was detained in New York this morning. Danny Kuo and Sandeep Goyal were also charged. Kuo was arrested. There were two other defendants charged in the matter but there names have not been released.
“The trades at issue in the new charges included securities of Nvidia Corp. (NVDA) and Dell Inc. (DELL), according to the complaint filed today against Newman, Chiasson, Horvath and Kuo by FBI Special Agent David Makol.”
“Newman caused a hedge fund to execute securities transactions in Dell based on material, nonpublic information Newman obtained from a co-conspirator,” according to the complaint, while “Chiasson caused a hedge fund to execute securities transactions in Dell based on material non-public information Chiasson obtained from a co-conspirator.”
The case is U.S. v. Newman, 12-00124, U.S. District Court for the Southern District of New York (Manhattan)