UNITED STATES District Court Judge Richard Sullivan ruled that two hedge fund managers and an analyst will stand trial together in an alleged $62m insider trading scheme that involved knowing Dell's financial results ahead of public release and using the information to make considerable profits.
Hedge fund managers Todd Newman and Anthony Chiasson and analyst Jon Horvath have been charged with insider trading following an investigation by the US Federal Bureau of Investigation (FBI). The three defendants asked Judge Sullivan to be tried separately, a request that was denied.
Newman's lawyer, Stephen Fishbein told the judge that his client would be prejudiced if the jury heard the amount of money another defendant made. Fishbein told the judge, "We have all seen the protests, the 99 percent. [...] I can't think of a more emotional issue in this day and age."
Judge Sullivan didn't buy the accused white collar criminal's sob story saying, "I tried a murder trial with the shooter and the look-out at the same time. How do you think they felt?"
The FBI's investigation into insider trading caught Newman, Chiasson and Horvath after Sandeep Goyal, Jesse Tortora and Spyridon Adondakis turned from analysts to informants. According to its investigation, the defendants acted on prior knowledge of Dell's first and second quarter 2008 financial results and the prosecution alleges that Chiasson and Newman made profits of $57m and $3.8m, respectively.
The trial is set to begin on 29 October. µ