Clear Benefit
With Nvidia, the disclosure began with an employee in the company’s finance unit who provided earnings numbers to a friend, who then passed the information to an analyst. The information made its way to Newman and Chiasson through the same circle of analysts involved in the Dell leak.
Prosecutors said the information earned $4 million for Newman’s fund and $68 million for Chiasson’s. Newman was sentenced to 4 1/2 years in prison and Chiasson 6 1/2 years.
“Unfortunately, this victory comes only after years of government overreaching,” Newman’s lawyers, Stephen Fishbein and John Nathanson, said in a statement.
Chiasson’s lawyer, Gregory Morvillo, said his client “is deeply gratified by this complete vindication, one that ends the five-year ordeal he and his family endured.”
Steinberg’s attorney, Barry Berke, said in a statement that his client’s conviction must now be tossed as well since it’s now clear “he did not commit any crime.”
Bharara’s spokesman, Jim Margolin, declined to comment.
Clear Benefit
In overturning the convictions, the appeals court said prosecutors needed to show that the person disclosing the information received a clear benefit -- something more than the nurturing of a friendship.
The appeals court also said the person being prosecuted had to know about the benefit. That issue wasn’t before the Supreme Court.