In a rare event, a federal court recently ordered the United States Securities and Exchange Commission, SEC, to refund to a now defunct hedge fund — Level Global Investors — $21.5 million in settlement monies the hedge fund paid in 2013 to settle SEC insider trading charges. The Federal Court’s Order was issued based upon the hedge fund’s motion seeking return of settlement funds after the insider trading conviction of one of its founders, Anthony Chiasson, was overturned in December 2014 by the Second Circuit Court of Appeals in the Newman Case, which significantly raised the Government’s standard of proof in civil and criminal insider trading investigations and prosecutions. The SEC did not oppose the motion, and will make payment to the hedge fund’s former investors.
I do hope the SEC remembers to include prejudgement interest when it writes that big check (sorry, I couldn’t resist).
David R. Chase, Esq., a former SEC lawyer, and now securities attorney and SEC defense lawyer, represents individuals in SEC investigations, FINRA investigations and SEC and FINRA enforcement cases nationwide. You may contact him toll-free at: 800-760-0912 or e-mail at: david@davidchaselaw.com. The website of the Law Firm of David R. Chase, P.A., located in Fort Lauderdale, Fl., is: www.davidchaselaw.com.
