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 18,228.30 133.47 0.74%
Nasdaq 5,305.71 48.22 0.92%
S&P 500 2,159.93 13.83 0.64%
Treasuries 1.56 -0.03 -2.08%
Data as of 4:50am ET
Company Price Change % Change
Chesapeake Energy Co... 6.23 -0.39 -5.89%
Bank of America Corp... 15.29 0.20 1.33%
Procter & Gamble Co 88.36 0.51 0.58%
Ford Motor Co 11.98 -0.03 -0.25%
Micron Technology In... 18.00 0.64 3.69%
Data as of Sep 27
Sponsors

Sections

Wells Fargo executive Carrie Tolstedt could still walk away from the bank with $77 million in stocks and options, despite new efforts by the bank to curb her controversial pay. More

Despite attacks from Republicans including Donald Trump, the Federal Reserve is a big money maker for U.S. government. More

SpaceX CEO Elon Musk laid out his plan to put humans on Mars to eventually form a self-sustaining colony. More

Low interest rates have pushed some housing markets around the world into bubble-risk territory, according to a new report out of UBS. More