Two former hedge fund managers reaped a total of $70.8 million in illegal profits by tapping a "corrupt network" of Wall Street analysts, a U.S. prosecutor said at the start of an insider trading trial on Tuesday.
Todd Newman, who was a portfolio manager at Diamondback Capital Management, and Anthony Chiasson, co-founder of Level Global Investors, were charged in January in a sweep dubbed "Operation Perfect Hedge" by the Federal Bureau of Investigation. More than 70 people have been charged in the government's broad probe of Wall Street trading.
Chiasson, 39, and Newman, 48, are accused of illegally trading ahead of computer maker Dell Inc's earnings reports for the first and second quarters of 2008, netting profits of $57 million and $3.8 million, respectively. Chiasson is also accused of netting $10 million in illegal profits ahead of the May 2009 results of chipmaker Nvidia Corp.
Prosecutor Richard Tarlowe told jurors in U.S. District Court in Manhattan that Newman and Chiasson
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