Jon Horvath, a former technology analyst at SAC Capital’s Sigma Capital Management LLC, asked a federal judge in New York to delay his insider-trading trial, scheduled to begin Oct. 29, until January.
U.S. District Judge Richard Sullivan, who is presiding over the case of Horvath and his co-defendants, Level Global Investors LP co-founder Anthony Chiasson and ex-Diamondback Capital Management LLC portfolio manager Todd Newman, didn’t immediately rule on the request. Today he ordered prosecutors or any defendant who wished to respond to the request to do so by Sept. 6.
Federal prosecutors in the office of Manhattan U.S. Attorney Preet Bharara in New York filed a superseding, or revised indictment, on Aug. 28 against all three defendants, adding a charge of securities fraud involving Nvidia Corp. (NVDA:US) They were previously charged with forming a “criminal club” of friends and co-workers who reaped almost $62 million from insider trading in Dell Inc. (DELL:US) shares.
Assistant U.S. Attorneys Antonia Apps and Richard Tarlowe late Wednesday also filed a memo detailing their case against the three men, with additional evidence that Newman, Chiasson and Horvath attempted or did obtain material nonpublic information about 11 more stocks not listed in the indictment, including Advanced Micro Devices Inc. (AMD:US); Taiwan Semiconductor Manufacturing Co. (2330); Texas Instruments Inc. (TXN:US); Intel Corp. (INTC:US) and Western Digital Corp. (WDC:US)
Prosecutors also said in court papers that there was an unnamed portfolio manager who was a co-conspirator who was part of the scheme with Newman and Chiasson and identified sources of inside information for the defendants.
Apps and Tarlowe said two of those men who’ve pleaded guilty and already testified as prosecution witnesses in earlier trials also passed information to these defendants, including Mark Anthony Longoria, a former Advanced Micro manager and Daniel DeVore, a former supply manager for Dell, who both moonlighted as consultants for Primary Global Research LLC.
The U.S. also said Manosha Karunatilaka, a former Taiwan Semiconductor Manufacturing Co. manager who pleaded guilty and was sentenced to prison, also supplied nonpublic information to the men.
Apps and Tarlowe said some of the trading in Nvidia was conducted by Jesse Tortora of Diamondback and Newman. In January, Stamford, Connecticut-based Diamondback agreed to pay $9 million to end an insider-trading investigation.
Bharara’s office agreed not to prosecute the firm for the actions of the two employees, while Apps said at the time that the misconduct “was not known by the firm’s co-founders.”
“Diamondback fully resolved matters with the government when it entered into its Non Prosecution Agreement in January 2012,” Steve Bruce, a Diamondback spokesman said in an e-mailed statement.
When he announced the case in January, Bharara described how the information was allegedly passed from employees who worked at technology companies to fund managers who traded on the nonpublic information.
Bharara placed Sandeep Goyal, a former Dell employee, at the center of the ring and said an unnamed person in the Dell investor-relations department passed secret earnings information to Goyal, who passed it on to Tortora.
Tortora, Horvath and Spyridon “Sam” Adondakis, a Level Global analyst, were friends who shared inside information on public technology companies, including Dell, prosecutors said.
Another man, Danny Kuo, a former analyst at Whittier Trust Co., a South Pasadena, California-based wealth-management company was arrested and charged with the defendants in January. He pleaded guilty in April and has also agreed to cooperate with the government. Adondakis, Kuo, Tortora and Goyal, who have pleaded guilty and are cooperating with the U.S., could testify at trial.
Steve Peikin, a lawyer for Horvath, didn’t return calls seeking comment about the government’s papers. John Nathanson, a lawyer for Newman, and Greg Morvillo, a lawyer for Chiasson, declined to comment.
The case is U.S. v. Newman, 12-00124, U.S. District Court, Southern District of New York (Manhattan).
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