Level Global Investors co-founder Anthony Chiasson was sentenced to 6 1/2 years in prison for using illegal tips funneled to him from analysts and company insiders to make $68 million for his hedge fund.
Bloomberg reports that U.S. District Judge Richard Sullivan handed down the sentence Monday in Manhattan federal court, setting aside more severe recommendations by prosecutors and federal guidelines.
Sullivan presided over the six-week jury trial that ended in Chiasson’s conviction for conspiracy and securities fraud.
Chiasson, 39, of New York, began his career on Wall Street at Salomon Brothers and later left Steven A. Cohen’s SAC Capital Advisors to start his own hedge fund. He had asked Sullivan to impose a prison term shorter than the 10 to 13 years recommended by the guidelines. Sullivan, who said today that the proper range was eight to 10 years, still chose a lesser term.
'It is not embezzling, but it was cheating to realize tremendous profits of tens of millions of dollars', he told Chiasson at the hearing. Sullivan rejected Chiasson’s request to remain free while he appeals and ordered him to surrender in 90 days, recommending a federal prison camp in Otisville, New York. He also ordered Chiasson pay a $5m fine and would order forfeiture to be determined at a later date.
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