Ex-hedge fund manager gets 4 1/2 years in prison

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Associated Press

Posted on May 2, 2013 at 11:02 AM

Updated Thursday, May 2 at 11:02 AM

NEW YORK (AP) — A former hedge fund manager at a Connecticut firm has been sentenced to 4 1/2 years in prison for insider trading.

Todd Newman was sentenced Thursday by federal Judge Richard Sullivan in Manhattan.

The Needham, Mass., man was punished for trades made while he managed money at Stamford, Conn.-based Diamondback Capital Management in 2008 and 2009.

The judge said he found it hard to see why someone making up to $4 million a year would risk everything to engage in insider trading.

He also fined Newman $1 million and ordered him to pay $738,000 in restitution.

The 48-year-old Newman declined to speak before he was sentenced. He was convicted in December of conspiracy and insider trading charges for trades that generated $3.6 million in profits.

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