Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

FBI hits 3 firms with warrants

By Jesse Solomon


NEW YORK (CNN) -- Federal agents raided the offices of three investment firms, officials said Monday, with the raids coming amid widespread speculation of hedge-fund insider trading allegations.

The names of the companies were not made public, but a law enforcement official with knowledge of the investigation said the addresses of the raids matched the addresses of Diamondback Capital Management LLC in Stamford, Connecticut; Loch Capital Management in Boston; and Level Global Investors LP in New York.

The official addresses of those firms were listed in a U.S. Securities and Exchange Commission statement filed on Sept. 30.

"The FBI is conducting court-authorized search warrants in an ongoing investigation," the official told CNN, but declined to comment on whether the raids were part of a wider insider-trading investigation.

Monday's raid comes on the heels of a 2009 case, when federal prosecutors charged hedge-fund billionaire Raj Rajaratnam of the Galleon Group and others with reaping millions from illegal trading between 2006 and 2009. Rajaratnam has pleaded not guilty.

Diamondback Capital Management, Level Global Investors, and Loch Capital Management could not be immediately reached for comment. To top of page

Index Last Change % Change
Dow 21,082.95 70.53 0.34%
Nasdaq 6,205.26 42.23 0.69%
S&P 500 2,415.07 10.68 0.44%
Treasuries 2.26 -0.01 -0.49%
Data as of 1:53am ET
Company Price Change % Change
Bank of America Corp... 23.25 -0.11 -0.47%
Chesapeake Energy Co... 5.18 -0.37 -6.67%
Ford Motor Co 10.86 -0.10 -0.91%
General Electric Co 27.49 -0.34 -1.22%
Comcast Corp 40.34 0.01 0.02%
Data as of May 25
Sponsors

Sections

Various big-name sponsors are yanking their dollars away from New York's 2017 Puerto Rican Day Parade amid a controversial decision to honor FALN member Oscar López Rivera. More

The Trump administration will allow lemons from Argentina to be imported for the first time in 16 years. It's a move that's angered California lemon farmers. More

Lindsey doesn't know if she should pay off her debt or save up for a house. CNNMoney's Broke No More advice column has some suggestions. More