Level Global Investors LP co-founder Anthony Chiasson, convicted last year of taking part in a $68 million insider-trading scheme, deserves a term of more than 10 years in prison for his crimes, prosecutors told the court.
Chiasson, 39, whose sentencing is scheduled for May 13, has asked U.S. District Judge Richard Sullivan to impose a term less than that called for by advisory sentencing guidelines The term of 10 to 13 years called for by the guidelines is “Draconian,” he said in court papers.
His lawyers instead asked that Chiasson be sentenced to an unspecified shorter prison term, saying the alleged crimes were “aberrant” and that he has led an “exemplary life.”
Prosecutors said yesterday in a memo to Sullivan that Chiasson should serve eight to 10 years, arguing he was a member of a “criminal club that exchanged inside information about multiple technology stocks over nearly a two-year period.”
Assistant U.S. attorneys Antonia Apps, Richard Tarlowe and John Zach wrote that after Chiasson hired Spyridon “Sam” Adondakis, to work as his analyst, he received and traded on a constant flow of illegal tips on Dell Inc. (DELL:US) and Nvidia Corp. (NVDA:US)
Chiasson, who began his career on Wall Street at Solomon Brothers and left SAC Capital Advisors LP to start the hedge fund, was convicted in December of five counts of securities fraud.
A co-defendant, Todd Newman, a former Diamondback Capital Management LLC portfolio manager, was sentenced to 4 1/2 years in prison on May 2 for reaping more than $4 million from illicit trading in Dell and Nvidia.
The case is U.S. v. Newman, 1:12-cr-00121, U.S. District Court, Southern District of New York (Manhattan).
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