Federal prosecutors in Manhattan say a former hedge fund manager at a Stamford, Conn.-based firm should serve at least five years in prison for his insider trading conviction.

Prosecutors also say in papers filed Friday that Todd Newman should repay $39 million to his former employer, Diamondback Capital Management.

The government says Diamondback has properly requested restitution because it is a victim.

The company wants part of the salary Newman received over the two years when the insider trading occurred. It also is seeking attorneys' fees and other expenses related to inquiries by regulatory authorities.

Defense lawyers have argued for leniency. They say Newman is a kind, decent and gracious man whose life does not revolve around money.

His sentencing is scheduled for Thursday.