Two former hedge fund managers were found guilty on Monday of fraud and conspiracy, the latest convictions in the government's unabated campaign to eliminate illegal conduct on Wall Street trading floors.
After three days of deliberations, a jury convicted Anthony Chiasson, a co-founder of Level Global Investors, and Todd Newman, a former portfolio manager at Diamondback Capital Management. The two had denied charges that they participated in a conspiracy that made more than $70 million illegally trading technology stocks.
"With today's guilty verdicts, Todd Newman and Anthony Chiasson join the ranks of high-level investment fund managers who are being made to answer for their extraordinarily bad risk-reward analysis about what is right and what is wrong," Preet Bharara, the United States attorney in Manhattan, said in a statement. "Like scores of privileged professionals before them, Newman and Chiasson are finding out the hard way that the opportunity cost of gaining an illegal edge in the market is the loss of one's liberty."
Juries in Federal District Court in Manhattan have convicted all 11 insider-trading defendants who have taken their cases to trial since 2009, the year that prosecutors began bringing charges arising out its multi-year investigation into criminal activity at hedge funds.
Of the 72 people charged with insider trading crimes -- a collection of traders, corporate executives, consultants and lawyers -- the United States attorney's office in Manhattan has secured 71 guilty pleas or convictions. (Deep Shah, an indicted former analyst at Moody's, has been declared a fugitive.)
Both Mr. Chiasson and Mr. Newman remained stoic as the jury foreman announced the verdict. Judge Richard J. Sullivan, the judge presiding over the case, set sentencing for April 19. Until then, they are free on bail.
Reid H. Weingarten, a lawyer for Mr. Chiasson, 39, said his client would appeal. Stephen Fishbein, a lawyer for Mr. Newman, 48, did not immediately respond to a request for comment.
The trial of Mr. Chiasson and Mr. Newman grew out of one of the bigger insider trading conspiracies uncovered by prosecutors. In Nov. 2010, the F.B.I. raided the offices of Level Global and Diamondback. About a year later, prosecutors charged Mr. Chiasson, Mr. Newman and six others with a participating in a "tight-knit circle of greed" that earned illegal profits by trading the stocks of Dell, the computer company, and Nvidia, a chipmaker.
Six of the eight defendants pleaded guilty, but Mr. Chiasson and Mr. Newman fought the charges, denying that they traded while knowingly in possession of secret information.