As you may recall, back in November the feds made a big show of announcing their latest insider trading probe by raiding showing up at the offices of a bunch of hedge funds, telling employees to walk in with their hands in the air and then sit quietly while a team of agents put documents in boxes. The ones we knew about were Level Global, Diamondback and Loch Capital, based in Greenwich, Stamford and Boston. There was also a fourth, whose identity has remained unknown. Read more »
This car and two others like it are still parked outside the firm’s Boston offices circa now. Read more »
Greenwich-based Level Global, which manages around $4 billion, was founded in 2003 by former SAC Capital trader David Ganek. Stamford-based Diamondback, which was founded in 2005 and manages over $5 billion, is headed by SAC alum Richard Schimel and other former SAC managers).
Diamondback has not had anything to say publicly about the matter, while a Level Global spokesman issued this nonchalant statement: Read more »
Agents arrested several people Wednesday at an office building on West 36th Street. The FBI said one of the suspects was a member of the Bonanno organized crime family.
Authorities said the illicit brokerage was artificially inflating the value of a stock in a company with misleading sales pitches.
The suspects were expected to appear in court later Wednesday.
FBI Raids Boiler Room Brokerage [FoxNY]
The London-based hedge fund, Moore Capital, was one of the firms raided by the City watchdog the FSA, the BBC has learned. One person at Moore Capital and five other City workers are being held. Those arrested are suspected of taking part in a long-running insider-dealing scheme. The arrests came after 16 addresses were searched in a joint probe by the Financial Services Authority (FSA) and Serious Organised Crime Agency (Soca). Documents and computers were seized from premises in London, the South East and Oxfordshire. It is the FSA’s biggest operation against insider dealing.