Level Global Investors co-founder and portfolio manager Anthony Chiasson was sentenced Monday by U.S. District Judge Richard Sullivan in New York to serve 78 months in prison and to pay a $5 million fine.
Mr. Chiasson was convicted in December 2012 of securities fraud.
Gregory Morvillo, a lawyer at Morvillo LLP and Mr. Chiasson's attorney, said his client will appeal the decision over the issue of jury instructions related to his client's level of involvement. “This is the end of round one,” Mr. Morvillo said in an interview.
Federal prosecutors had sought a minimum sentence of 97 months for Mr. Chiasson, whom they described in sentencing documents as “a member of a criminal club that exchanged inside information” about shares of Dell Inc. and Nvidia Corp. over a two-year period.
In separate civil action brought by the Securities and Exchange Commission, the hedge fund management firm agreed in late April to pay $21.5 million to settle insider-trading charges. That settlement, which requires court approval, resolves civil charges filed by the SEC against Mr. Chiasson, former analyst Spyridon “Sam” Adondakis and six other defendants, along with hedge fund management firm Diamondback Capital Management. Without admitting or denying the allegations, Level Global agreed to pay $10.1 million in fees earned from the alleged insider trading, plus a penalty of $10.1 million and prejudgment interest of $1.3 million. Mr. Adondakis also pleaded guilty to criminal charges.