They alleged in court papers that the fund earned more than $21.6 million on trades by David Ganek, a Level Global co- founder who was ruled by Sullivan to be an uncharged co- conspirator in the insider-trading scheme. Ganek hasn’t been charged with a crime and has denied any wrongdoing.
Adondakis, who pleaded guilty in a related case, testified that he didn’t tell Ganek about the source of his tips.
“David’s trades were perfectly legal as is demonstrated by three facts: the case is over and the government did not charge him, the star witness testified that David wasn’t involved in any conspiracy and the lead FBI agent testified that David was never implicated,” John Carroll, Ganek’s lawyer, has said.
The case is U.S. v. Newman, 1:12-cr-00121, U.S. District Court, Southern District of New York (Manhattan).