Diamondback Wants $39M In Restitution From Insider Trader

Law360, New York (April 29, 2013, 7:28 PM EDT) -- Defunct hedge fund Diamondback Capital Management LLC on Monday told a New York federal judge it is entitled to $39 million in restitution from convicted former fund manager Todd Newman, saying it was a victim of his insider trading scheme.

Diamondback says it qualifies as a victim under the Mandatory Victims Restitution Act as Newman based his unlawful conduct on the misappropriation of Diamondback resources, which tarnished the fund’s reputation after it came to light and led to investor withdrawals of around $1.3 billion.

The run...
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