Level Global Investors of New York and Diamondback Capital Management of Stamford, Conn. , two hedge funds managed by SAC Capital Advisors were raided by FBI agents for insider trading.
The third firm was not managed by SAC Capital Advisors - Loch Capital Management.
This raid was part of an ongoing investigation into insider trading and hopefully will be the last.
The firms are said to be voluntarily cooperating and are not accused of wrongdoing.
An interesting note - the use of search warrents and surprise raids instead of court ordered subpoenas to produce documents means the FBI is worried about the destruction of documents.
This is really interesting because my bestfriend's father was one of the heads at SAC and recently retired from the post when investigation began and started his own hedgefund run out of Greenwich, CT. The interesting this is that due to the current U.S economy, a lot of the trading has been moved oversees to places such as Singapore (where my friend's father does his dealings.)
ReplyDeleteI'm glad to see that the FBI is taking corporate fraud seriously. Hopefully the government will continue enforcing regulations to help prevent future fiscal crises.
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