{"id":788,"date":"2010-11-23T19:28:21","date_gmt":"2010-11-23T19:28:21","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2010\/11\/3_hedge_funds_raided_by_fbi_in_1"},"modified":"2022-03-09T16:01:48","modified_gmt":"2022-03-09T22:01:48","slug":"3-hedge-funds-raided-by-fbi-in-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/3-hedge-funds-raided-by-fbi-in-1\/","title":{"rendered":"3 Hedge Funds Raided by FBI in Insider Trading Case"},"content":{"rendered":"<p>As part of its growing investigation into possible inside trading in the $1.7 trillion hedge fund industry, the FBI has raided hedge funds Diamondback Capital Management LLC, Level Global Investors LP, and Loch Capital Management LLC, which has a close link to a witness who pleaded guilty in the <a href=\"https:\/\/www.investorlawyers.com\/broker-misconduct.html\">insider trading <\/a>probe involving hedge fund Galleon Group. (That investigation is one that prosecutors are calling the largest U.S. hedge fund insider trading case to date. Of the 23 people charged in civil or criminal court, 14 people, including ex- hedge fund S2 Capital LLC manager Steven Fortuna have pleaded guilty). Level Global Investors and Diamondback Capital Management are owned by ex-managers of Steven Cohen&#8217;s SAC Capital Advisors, which is also a hedge fund. Per public filings, Diamondback manages about $4.71 billion while Level Global manages about $3.09 billion.<\/p>\n<p>The raids come just as federal prosecutors are getting ready to reveal a number of insider trading cases against hedge fund traders, Wall Street bankers, and consultants. In addition to trying to determine whether investment bankers and other parties let traders know about pharmaceutical company buyouts (companies have allegedly earned tens of millions of dollars in illegal profits because of secret information about mergers), officials are also looking at &#8220;expert network&#8221; firms that garner big fees from hedge funds for matching them with industry specialists.<\/p>\n<p>Meantime, shares of Goldman Sachs Group Inc. dropped by 3.4% after <strong>The Wall Street Journal<\/strong> reported that the Justice Department is looking into possible leaks by Goldman employees about mergers.<\/p>\n<p><strong>Related Web Resources:<\/strong><br \/>\nFBI raids 3 hedge funds in insider trading case, Reuters\/Yahoo, November 22, 2010<br \/>\nFeds turn up heat on Wall St., raid 3 hedge funds, AP\/Google, November 23, 2010  <a href=\"https:\/\/www.investorlawyers.com\/blog\/3-hedge-funds-raided-by-fbi-in-1\/#more-788\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As part of its growing investigation into possible inside trading in the $1.7 trillion hedge fund industry, the FBI has raided hedge funds Diamondback Capital Management LLC, Level Global Investors LP, and Loch Capital Management LLC, which has a close link to a witness who pleaded guilty in the insider trading probe involving hedge fund [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3748,3811],"tags":[],"class_list":["post-788","post","type-post","status-publish","format-standard","hentry","category-hedge-funds","category-insider-trading"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>3 Hedge Funds Raided by FBI in Insider Trading Case | Investment Fraud Attorneys<\/title>\n<meta name=\"description\" content=\"As part of its growing investigation into possible inside trading in the $1.7 trillion hedge fund industry, the FBI has raided hedge funds Diamondback &#8212; November 23, 2010\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/3-hedge-funds-raided-by-fbi-in-1\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"3 Hedge Funds Raided by FBI in Insider Trading Case | Investment Fraud Attorneys\" \/>\n<meta name=\"twitter:description\" content=\"As part of its growing investigation into possible inside trading in the $1.7 trillion hedge fund industry, the FBI has raided hedge funds Diamondback &#8212; November 23, 2010\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"3 Hedge Funds Raided by FBI in Insider Trading Case | Investment Fraud Attorneys","description":"As part of its growing investigation into possible inside trading in the $1.7 trillion hedge fund industry, the FBI has raided hedge funds Diamondback &#8212; 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