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Judge Says Preet Bharara And Co. Maaaaaybe Violated Hedge Fund Manager's Constitutional Rights

So that's not great.
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David Ganek: 1, Preet Bharara: 0.

A federal judge dealt a blow to Manhattan U.S. Attorney Preet Bharara on Thursday, saying he found it plausible that prosecutors and FBI agents violated the constitutional rights of hedge-fund founder David Ganek when they raided his offices in 2010. The ruling advances a lawsuit brought by Mr. Ganek against Mr. Bharara and current and former Federal Bureau of Investigation agents and prosecutors involved in an insider-trading investigation of the hedge fund, Level Global. It also means the defendants in the suit, Mr. Bharara and the prosecutors and agents, will have to turn over documents related to obtaining a search warrant of Level Global’s offices. In his suit, Mr. Ganek asserts that evidence was fabricated to obtain the warrant.

Judge Allows Lawsuit Over Hedge-Fund Raid to Proceed [WSJ]


By United States Department of Justice ( [Public domain], via Wikimedia Commons

A Homecoming For Preet Bharara

Like all reunions, it's gonna be awkward.

Preet Bharara: University Of Michigan Doctor Financially Compensated For Leaking Confidential Drug Trial Data To Former SAC Trader Just An Innocent Pawn In Big Bad Hedge Fund's Game

As you may have heard, earlier today, Mathew Martoma, a former portfolio manager in SAC Capital's CR Intrinsic unit, was charged with allegedly running “the most lucrative insider trading scheme ever," netting $276 million for the fund. He did so based on information that was given to him by Sid Gilman, a University of Michigan neurologist and chair of a "safety-monitoring committee that oversaw a clinical trial by Wyeth LLC and Elan Corp.  into whether the drug bapineuzumab, or bapi, was safe for patients with mild-to-moderate Alzheimer’s disease." Over an 18-month period, Gilman and Martoma met 42 times, in addition to emailing and chatting over the phone. For example:

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Hedge Fund Manager Are Sad

And dying from a form of cancer that attacks alpha generation, they say.