FBI Arrests Hedge Fund Employees For Insider Trading
The Federal Bureau of Investigations (FBI) arrested co-founder of Level Global Investors LP, Anthony Chiasson, and two other people today. The FBI says it was part of a five-year U.S. probe of insider trading at hedge funds.
The others arrested are Todd Newman, formerly of Diamondback Capital Management LLC, and Jon Horvath. The former was arrested in the Boston area and the latter in the New York area. The arrests haven't been made public, according to Bloomberg. There is one additional arrest expected as a fourth person turns himself in today.
On Wednesday, the office of Manhattan U.S. Attorney Preet Bharara is expected to formerly announce the securities fraud charges. The securities fraud probe has netted at least fifty-six people and more than fifty have pleased or been convicted after trial since 2009, including Galleon Group LLC co-founder Raj Rajaratnam. Mr. Rajaratnam is currently serving an eleven year sentence for insider trading. His sentence was the longest ever for insider trading.
In February 2011, Level Global told clients that it was shutting down after eight years in business because of the federal probe.
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