Ex-Sigma Analyst Loses Bid for Insider-Trade Trial Delay
Jon Horvath, a former technology analyst at SAC Capital’s Sigma Capital Management LLC, and two co-defendants lost a bid to delay their Oct. 29 insider-trading trial based on new evidence provided by the U.S.
Horvath; Anthony Chiasson, a co-founder of Level Global Investors LP; and Todd Newman, an ex-Diamondback Capital Management LLC portfolio manager, were charged in January with operating a “criminal club” of fund managers and co-workers who reaped almost $62 million based on illegal tips about Dell Inc. In August, they were indicted for allegedly trading on inside information about Nvidia Corp. (NVDA) They deny the charges.
All three men asked to delay the trial until January after the U.S. filed a memo with details of the prosecution’s case. The government said it had additional evidence the defendants attempted or did obtain material nonpublic information about 11 more stocks not listed in the indictment, including Advanced Micro Devices Inc. (AMD), Taiwan Semiconductor Manufacturing Co. (2330), Texas Instruments Inc. (TXN), Intel Corp. (INTC) and Western Digital Corp.
“The court is sympathetic to defendants’ objections,” U.S. District Court Judge Richard Sullivan in Manhattan, who is presiding over the case, said in his ruling today. Still, he denied the request for a postponement.
The defendants claimed the government’s memo failed “to provide specificity as to the dates when any alleged inside information was obtained or received,” according to the judge.
The memo stated only the quarters during which the information was obtained, while defense lawyers sought more precise dates, Sullivan said. He said defense lawyers could raise this lack of knowledge or specificity when they question government witnesses at the trial.
Five people who were part of the insider-trading scheme have pleaded guilty, are cooperating with the government and could testify for the prosecution.
Steve Peikin, a lawyer for Horvath, and John Nathanson, a lawyer for Newman, didn’t return calls seeking comment on the ruling. Greg Morvillo, a lawyer for Chiasson, declined to comment.
The case is U.S. v. Newman, 12-CR-00124, U.S. District Court, Southern District of New York (Manhattan).
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