Remember the Psychic Friends Network? Dealbook reports that the government has
accused the two men of receiving inside information through a “circle of
friends” who exchanged information about technology companies. Mr. Chiasson is
charged with reaping the largest profits for his hedge fund — about $57 million
— by shorting Dell shares before a negative earnings announcement in August
2008. Mr. Newman is also accused of trading in Dell at the same time, but in
much smaller amounts.
The information was passed around among a group of analysts
who have pleaded guilty and agreed to cooperate in the case. Unlike other
recent insider trading cases, however, the government does not have wiretaps or
other consensual recordings to show how the tips made their way to Mr. Chiasson
and Mr. Newman. Thus, the case will ride on whether analysts who worked for the
two defendants are believable witnesses for the prosecution…..
No comments:
Post a Comment