Reuters/ Mike Segar
"Because the Government failed to present sufficient evidence that the defendants willfully engaged in substantive insider trading or a conspiracy to commit insider trading in violation of the federal securities laws, we reverse Newman and Chiasson's convictions and remand with instructions to dismiss the indictment as it pertains to them with prejudice," the opinion said.
Newman, an ex-Diamondback Capital portfolio manager, and Chiasson, the co-founder of now-defunct hedge fund Level Global, were co-defendants accused of trading on inside information in Dell and Nvidia stocks. The two hedge funders were convicted in May 2013.
Today's court decision concluded that the "jury instructions were erroneous and that there was insufficient evidence to support the convictions" of Newman and Chiasson.
"Today's decision is a resounding victory for the rule of
Well, the U.S. Attorney Preet Bharara, who has been cracking down on insider trading since 2009, probably isn't going to like this.
Here's the appellate court's opinion:
Appeal from the United States District Court-- Newman and Chiasson