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Supreme Court Denies Request to Hear Newman Case

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October 5, 2015

Dear Friends,

Today, the U.S. Supreme Court officially refused to hear the United States v. Newman insider trading decision. By way of background:

  • In December 2012, Todd Newman and Anthony Chiasson were convicted of securities fraud and sentenced to prison after their trades in certain stocks, allegedly based on a chain of material non-public information, resulted in over $70 million in gains for their hedge funds.
  • In December 2014, the U.S. Court of Appeals for the Second Circuit, overturned Newman and Chiasson’s convictions finding: (a) that the corporate insiders who provided the tips prompting Newman and Chiasson’s trades, were not unlawful because the insiders did not receive a personal benefit; and (b) the government failed to prove that Newman and Chiasson knew that the original tipper received a personal benefit.
  • In July 2015, the Department of Justice petitioned the U.S. Supreme Court to hear the Newman case.
  • Today, the U.S. Supreme Court officially declined to review the case, without comment.

Please  click here for the petition. Please feel free to contact us with any questions at info@counselworksllc.com or at (212) 867-0200.

Thank you,

CounselWorks

www.CounselWorksllc.com

About CounselWorks LLC

CounselWorks is a strategic business and regulatory consulting firm, that provides project-based consulting and manages compliance and regulatory programs for hedge funds, private equity firms, investment companies, broker-dealers and investment banks.
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