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FBI Raids Hedge Funds as Part of Insider-Trading Investigation

Image Courtesy - Federal Bureau of Investigation(NEW YORK) -- The FBI on Monday raided three hedge funds as part of an investigation into whether a number of hedge fund managers at major firms are guilty of insider-trading.

Search warrants were executed at Level Global Investors LP and Diamondback Capital Management LLC -- both located in Connecticut -- and also at Loch Capital Management LLC, in Boston. The raids involved confiscating records that investigators hope will help unravel what exactly took place.

"The FBI is executing court authorized search warrants in an ongoing investigation," said FBI spokesman Richard Kolko. "This matter is sealed and we have no additional comment."

According to the Wall Street Journal, both Connecticut hedge funds are run by former managers of Steven Cohen's SAC Capital Advisors. Loch is managed by brothers Timothy and Todd McSweeney, both of whom are known acquaintances of Steven Fortuna, the latter of whom pleaded guilty to insider-trading with Galleon.

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