A former fund manager at hedge fund firm Diamondback Capital is seeking leniency for his insider trading conviction.
Bloomberg reported that Todd Newman, who is facing a May 2 sentencing for a $72 million insider trading scheme, wants a lesser sentence than the 78-month maximum prison term recommended by U.S. probation officials.
Newman, who was convicted of last year, argued that he was responsible for less than $4 million of the total amount Diamondback illegally made. Newman was convicted of netting more than $61.8 million in illegal profits from alleged stock trades of computer company Dell and about $6 million from trades of semiconductor maker Nvidia with Level Global hedge fund co-founder Anthony Chiasson.
Diamondback told investors in a letter in December that it was planning to close its doors after receiving about $512 million redemption requests that month, leaving the firm with just $1.45 billion in assets.