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What it's like to have your world turned upside down by an insider trading conviction

Aug 23, 2016, 19:18 IST

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What's it like to be convicted of insider trading, and later freed?

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William D. Cohan wrote a fascinating profile for Fortune about Todd Newman, the hedge fund manager at now-defunct Diamondback Capital, whose case has raised questions about the definition of insider trading.

According to the government's case against him, Newman allegedly heard fourth-hand information that he then traded on. Newman has always maintained his innocence, and racked up hundreds of thousands of dollars in legal fees defending himself, according to the Fortune piece.

Here's more from the article:

"As he reflects on the events that reshaped his life, Newman, 51, shows traces of bitterness but mostly exudes calm and a degree of satisfaction. That perspective has come only with time, though. The day the feds came calling, his feelings ran more toward fear, panic, and confusion."

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In the Fortune article, Newman recounts the months he waited to see if he would be charged of wrongdoing, and how he feared that his young daughter would see him being arrested.

In 2013, Newman was sentenced to 54 months in federal prison. In December 2014, an appeals court overturned his conviction.

Lots had been written about the legal meaning of that overturning, but Fortune's story is the first time we hear from Newman's perspective.

Today, Newman says he cannot find another job in the hedge fund industry, and plans to start a business that would help others through experiences like his, Fortune reported.

One suggestion from Business Insider: he might try reaching out to this Connecticut couple that ministers to people who are convicted of white-collar crime.

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To read the full Fortune story, click here.

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