'Criminal Club' Charged in $62 Million Scheme on Insider Trading of Dell

Financial News Online Report

Seven men, including fund managers and analysts, were charged with forming a "criminal club" of friends and co-workers who reaped almost $62 million dollars from insider trading in Dell Inc. shares. Manhattan U.S. Attorney Preet Bharara alleged that the scheme included one trade that earned a $53 million dollar illegal windfall for Level Global Investors LP co-founder Anthony Chiasson and his fund. The insider-trading ring, which involved five different hedge funds and investment firms, is the largest identified by the U.S. to date to involve a single stock, federal authorities said. In addition to Anthony Chiasson, Todd Newman, a portfolio manager formerly at Diamondback Capital Management, Jon Horvath, a hedge fund analyst in New York, and Danny Kuo, a fund manager for Whittier Trust in South Pasadena, California, were taken into federal custody.

Topics: Insider Trading USA