Todd Newman, the former Diamondback Capital Management LLC portfolio manager convicted of taking part in a $72 million insider-trading scheme, must surrender to prison authorities July 8, a judge ruled.
Newman, 48, was sentenced on May 2 in Manhattan federal court to 4 1/2 years in prison. U.S. District Judge Richard Sullivan also ordered Newman to pay a $4 million fine, the proceeds his hedge fund made from trades on illicit tips in Dell Inc. and Nvidia Corp. Newman asked that he be allowed to remain free while he appealed his conviction.
Sullivan said in a ruling filed yesterday that while both prosecutors and defense lawyers agree Newman isn’t a flight risk, the court wasn’t convinced the defendant had raised a “substantial question of law or fact” likely to affect the outcome of the case.
Because of that, “the court need not consider whether the issue defendant raises on appeal is likely to result in a reversal of his conviction or a new trial,” Sullivan wrote. “Accordingly, defendant’s application for bail pending appeal is hereby denied.”
John Nathanson, a lawyer for Newman, couldn’t be immediately reached for comment on the decision.
The case is U.S. v. Newman, 1:12-cr-00121, U.S. District Court, Southern District of New York (Manhattan).