In January 2012, the SEC filed insider trading charges against Connecticut-based hedge fund advisory firm Level Global, the firm’s co-founder Anthony Chiasson, a former analyst Spyridon “Sam” Adondakis, and six other defendants, including five investment professionals and the hedge fund advisory firm Diamondback Capital Management.
The SEC alleged that Adondakis was a member of a group of closely associated hedge fund analysts who illegally obtained highly sensitive information regarding the financial performance of Dell and Nvidia before this information was made public. During 2008 and 2009, Adondakis passed the information on to Chiasson, who used it to execute trades on behalf of hedge funds managed by Level Global and reap millions of dollars in illegal profits.
“This settlement serves as another reminder that the SEC will hold hedge fund managers accountable when their employees violate the securities laws.” The SEC said.
Adondakis previously pleaded guilty to parallel criminal charges and agreed to a settlement with the SEC. The SEC is continuing to pursue its insider trading claims against the firm’s co-founder Chiasson, who was convicted in December 2012 of securities fraud in a parallel criminal proceeding.
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