Former Diamondback Capital Management LLC fund manager Todd Newman was sentenced to 4 1/2 years in prison for his role in an insider-trading scheme that used tips from technology company insiders to earn $72m.
Bloomberg reports that U.S. District Judge Richard Sullivan imposed the term Thursday in Manhattan federal court and also ordered Newman, 48, to pay a $4m fine for the proceeds the fund earned from the scheme.
Sullivan granted a request by defense lawyers to allow Newman to serve his term at the federal prison camp in Devens, Massachusetts. That facility is where Galleon Group LLC co-founder Raj Rajaratnam is serving an 11-year sentence for insider trading.
'It’s hard to see why somebody who’d reached the pinnacle of success, who had the respect of the community and wealth, would risk that for more', Sullivan said. 'This was all about money and getting more. It’s hard to explain why somebody would do that when they had so much'.
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