Entries in Insider Trading Investigation (2)


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.

Copyright 2010 ABC News Radio


Report: Feds Set for Multiple Insider Trading Indictments

Photo Courtesy - Getty Images(NEW YORK) -- The federal government is reportedly set to wind up a three-year insider trading investigation that could shake the investment world to its roots.

The Wall Street Journal on Saturday previewed what could be multiple charges against consultants, investment bankers, hedge fund and mutual fund traders who allegedly engaged in insider trading rings, reaping tens of millions of dollars.  Some charges could be leveled by the end of the year.

Experts are quoted as saying if the investigation is as large in scope as it appears, it could have the biggest impact of any probe of its kind in history.  It could reveal whether non-public information is routinely passed along by consultants for so-called expert networks, providing an investment edge to hedge fund managers and mutual fund traders.

Charges could be both federal and civil in nature.  The Journal says sources confirm a federal grand jury in New York has heard evidence in the matter but it is not clear what, if any, charges may follow.

Copyright 2010 ABC News Radio

ABC News Radio