Cheverus grad sentenced to 6 years in prison, fined $5 million for insider trading

Hedge Fund Level Global Investors LP fund manager and Portland native Anthony Chiasson exits United States District Court in New York, May 13, 2013.
BRENDAN MCDERMID | REUTERS
Hedge Fund Level Global Investors LP fund manager and Portland native Anthony Chiasson exits United States District Court in New York, May 13, 2013.
By Judy Harrison, BDN Staff
Posted May 14, 2013, at 8:44 a.m.

NEW YORK — A Portland native and former trustee of Cheverus High School was sentenced Monday in U.S. District Court to six years in prison for being part of an insider trading scheme that illegally earned investors $70 million.

Anthony Chiasson, 39, of New York City also was ordered to a pay a $5 million fine and to be on supervised release for one year after completing his prison term, according to the U.S. Attorney’s Office in the Southern District of New York. The former hedge fund manager and his co-defendant, Todd Newman, 48, of Needham, Mass., a former portfolio manager of Diamondback Capital Management, were convicted of securities fraud charges on Dec. 17 by a jury following a six-week trial, the FBI said in a press release issued Monday from its New York Field Office.

Chiasson was ordered to begin serving his sentence in 90 days, according to Forbes.com. He is expected to appeal the conviction and could remain free pending the outcome of that appeal.

Chiasson was born and raised in Portland, the fourth and youngest child of Louis and Lucille Chiasson, according to court documents. He attended his parish school and excelled academically at Cheverus, according to the sentencing memorandum filed by his attorney, Gregory Morvillo of New York City. Chiasson graduated seventh in his class in 1991.

He graduated in 1995 from Babson College in Wellesley, Mass., where he studied finance and economics, the sentencing memorandum said. Chiasson went to work as a research analyst at Salomon Brothers on Wall Street.

He founded Level Global Investors, a hedge fund that is now closed. The business was raided by the FBI in November 2010, according to Forbes.com. Chiasson was be indicted by a federal grand jury in February 2012.

“Chiasson was part of a criminal club of portfolio managers and analysts who obtained material nonpublic information [inside information], directly and indirectly, from employees who worked at public companies,” the press release for the U.S. Attorney’s Office said. “Specifically, Chiasson’s research analyst, Sam Adondakis, together with research analysts at other investment firms — including Jesse Tortora, Jon Horvath, and Danny Kuo — shared inside information with each other, which they then provided to their portfolio managers.”

Chiasson began serving on the board of his high school alma mater in 2009, according to a letter of support written by the Rev. William R. Campbell, president of the Jesuit school in Portland. Chiasson offered to resign in 2010 after the FBI raid, but Campbell refused to accept.

“I was impressed that in a moment of professional crisis, Anthony thought to place the needs of Cheverus above his own,” Campbell wrote. “I refused his resignation. Since he had been so supportive of me and the institution of Cheverus in its time of need, I wanted us to support him in his time of need.”

Campbell said that he reluctantly accepted Chiasson’s resignation after he was indicted. The priest said Chiasson was instrumental in addressing “several critical issues regarding Cheverus’ ongoing sustainability.”

Newman, 48, was sentenced May 2 to 4½ years in prison, according to the press release. Horvath, 43, and Kuo, 37, each have pleaded guilty to one count of conspiracy to commit securities fraud and two counts of securities fraud in September 2012 and April 2012, respectively. Tortora, 35, and Adondakis, 41, pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud in May 2011 and April 2011, respectively. All four of these defendants await sentencing.

http://bangordailynews.com/2013/05/14/news/portland/cheverus-grad-sentenced-to-6-years-in-prison-fined-5-million-for-insider-trading/ printed on December 25, 2014