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CAPITAL MARKET

CASE

DELLS INSIDER TRADING CASE

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This case involves insider trading by members

of a network of closely associated hedge fundtraders who illegally obtained material nonpublicinformation concerning public companies Dell,Inc. exchanged that information with others, and

reaped massive profits from trading on thatinformation.

FRAUD.docx

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CHRONOLOGY

DELLS INSIDER

SANDEEP GOYAL

During at least 2008, a Dell insider (the "Dell Insider") passed materialnonpublic information regarding Dell to Goyal, an analyst at InvestmentAdviser A who previously worked at Dell. This material nonpublicinformation included quarterly earnings information and otherperformance data regarding Dell that Goyal obtained in advance of

Dell's quarterly earnings announcements

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Newman used theinside information hereceived from Tortora

to trade Dell securitieson behalf of hedgefunds managed byDiamondback, reapingapproximately $3.8

million in profits forthose funds during2008.

SANDEEP GOYAL

JESSE TORTORA

TODD NEWMAN

DIAMONDBLACK CAPITALMANAGEMENT, LLC

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Tortora and Newman paid Goyal for providingmaterial nonpublic information regarding Dell by

arranging for Diamondback to direct soft dollarpayments totaling at least $175,000 to a

brokerage account in the name of a nominee ofGoyal. These payments were arranged by Tortora

and approved by Newman.

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"Soft dollars" are created when an investmentfirm causes its trading activity to be directedthrough a designated broker-dealer, and, in

return, the broker-dealer credits the

investment firm with a portion of thecommissions or fees from the executed

trading activity. These credits can then beused to pay for goods and services consumed

by the investment firm, such as third-party

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JESSETORTORA

JONHOVART

DANNY KUO SPYRIDONADONDAKIS

Tortora also passed the Dell inside information thathe received from Goyal to at least three individuals

at other investment adviser firms with whom

Tortora regularly shared information: (i) Adondakis,

(ii) Horvath, and (iii) Kuo

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SPYRIDON ADONDAKIS

After receiving the Dellinformation from Tortora,

Adondakis provided the

information to defendantChiasson, one of Level Global'stwo founding partners.

Adondakis informed Chiasson

that the Dell information hadoriginated from a source insideDell. Chiasson caused LevelGlobal's hedge funds to tradeDell securities based on the tips

he received from Adondakis,thereby causing Level Global'shedge funds to reap profitstotaling approximately $57

million in 2008.

ANTHONY CHIASSON

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JOHNHOVART

Communicated portfoliomanager at Hedge FundA then executed trades

in Dell securities .Those trades resulted in

approximately $1.4million in profits forHedge Fund A in 2008.

DANNY KUO

Directly or indirectly causeda hedge fund managed byInvestment Adviser B toexecute trades in Dellsecurities and which

resulted in over $180,000

in profits and lossesavoided for Investment

Adviser B's hedge fund in2008.

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COURT DECISION

The SECs complaint charges each of the defendants withviolations of Section 17(a) of the Securities Act of 1933, andSection 10(b) of the Securities Exchange Act of 1934 andRule 10b-5 thereunder, and, additionally, charges Goyal, Tortora,Newman, Adondakis, Chiasson, Horvath and Kuo with aiding and

abetting others violations of Section 10(b) of the Exchange Actand Rule 10b-5 thereunder. The SECs complaint seeks a final

judgment ordering the defendants to disgorge their ill-gottengains plus prejudgment interest, ordering them to pay

financial penalties, and permanently enjoining them fromfuture violations of these provisions of the federal securities

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