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. and Nvidia Corp.
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).