Level Global Investors LP co-founder Anthony Chiasson, who was sentenced to 6 1/2 years in prison for using illegal tips to make more than $68 million for his hedge fund, was ordered to forfeit $1.4 million.
U.S. District Judge Richard Sullivan, who sentenced Chiasson in May, set the forfeiture amount yesterday in a written order in federal court in Manhattan. Chiasson was convicted after a trial in 2012 of conspiracy and securities fraud for trading on illegal tips on Dell Inc. (DELL) and Nvidia Corp. (NVDA)
Sullivan said in yesterday’s order that he erred when he imposed a $5 million fine when sentencing Chiasson. That amount should have been no bigger than $1.25 million, the judge said.
Chiasson’s co-defendant at trial, former Diamondback Capital Management LLC portfolio manager Todd Newman, was also found guilty. He was sentenced by Sullivan to 4 1/2 years in prison. Both men have appealed.
A federal appeals court in Manhattan ruled June 18 that Chiasson and Newman may remain free while they appeal their convictions.
The case is U.S. v. Chiasson, 1:12-cr-00121, U.S. District Court, Southern District of New York (Manhattan).
To contact the editor responsible for this story: Michael Hytha at email@example.com