raids

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 »

Though we’ve had a good time with our parlor game, Who Will Be Next (To Get Raided) by the Feds as part of their Insider Trading Fest(ivius) 2010, I’d like to take a moment to get a little serious and a little personal. Over the next few days and weeks, some of our friends, colleagues, bosses and lovers are going to be accused of some stuff regarding the giving and receiving of hot tips. Because there isn’t a very black and white definition of insider trading, many firms across Wall Street, from Southern Manhattan to Southern Connecticut, will be sitting in fear, watching, wondering if the FBI is coming for them. The slightest stirring on the trading floor will freak them the fuck out. Basically, they’ll be living and working in total fear. And that upsets us just as much as it upsets the people waiting in limbo to find out if they’re going to get nailed by the feds. And while we can’t do anything to stop what’s coming, what we can do is offer a little hope. Here’s how.

At some point between now and the end of the year, a team of federal agents will be dispatched to our hedge fund of choice (how we have this pull will be revealed later). They will burst onto the scene, announcing their intent to get to the bottom of things. They will tell everyone to stay where they are and circle the highest ranking members of the firm, whose hands will be tied behind their backs. They’ll use verbal intimidation tactics like the ones mentioned in this morning’s Journal story, shouting at the targets, telling them it’s too late– they are going to be punished for being so very bad.

Then, strangely, the lights will go down and music will come on, playing “Hungry Like The Wolf.”

“Is this standard procedure?” people will wonder. And the answer is yes, it is. It’s standard procedure when you’re being paid a visit by FBI… Read more »

  • 22 Nov 2010 at 2:05 PM

FBI Taking Its Time With Loch Capital

This car and two others like it are still parked outside the firm’s Boston offices circa now. Read more »

  • 22 Nov 2010 at 12:32 PM

WSJ: FBI Raids Level Global And Diamondback Capital


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 »

  • 09 Jun 2010 at 12:21 PM

Feds Raid Bonanno Family Boiler Room

NEW YORK – The FBI says it’s raided a Manhattan boiler room brokerage with links to the mob.

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]

FBI Raids ‘Boiler Room’ Stock Promotion Operation [Bloomberg]

BBC:

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.

Update: A suspect and statement from Moore, via the WSJ: Read more »