Anthony Chiasson, the co-founder of the hedge fund Level Global Investors, was sentenced to 6.5 years in prison today for illegal trading in two tech stocks. The government had requested a sentence of 8 to 10 years, based on sentencing guidelines, arguing that Chiasson was responsible for more than $68 million in illegal profits to Level Global. In just one series of trades in 2008, Chiasson and his co-conspirators made $53 million on shares of computer maker Dell, in advance of the company’s Aug. 28 earnings announcement. Chiasson pleaded not guilty and was convicted in December.
One person likely following the proceedings closely is Michael Steinberg, the SAC portfolio manager charged in March with insider trading, allegedly for making the same trades on Dell at the heart of the Chiasson case. He and Chiasson share the same U.S. District judge, Richard Sullivan. Steinberg’s trial begins Nov. 18.