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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play

Search for Jobs

Index Last Change % Change
Dow 18,024.06 183.54 1.03%
Nasdaq 5,005.39 63.97 1.29%
S&P 500 2,108.29 22.78 1.09%
Treasuries 2.12 0.07 3.47%
Data as of 2:57pm ET
Company Price Change % Change
Bank of America Corp... 16.11 0.18 1.13%
Apple Inc 128.95 3.80 3.04%
Alcoa Inc 14.15 0.73 5.44%
Microsoft Corp 48.66 0.02 0.03%
Chesapeake Energy Co... 16.54 0.77 4.88%
Data as of May 1
Sponsors

Sections

A new accelerator, ICONYC Labs, is finding hot new Israeli startups to participate in its six-month program. More

A new accelerator, ICONYC Labs, is finding hot new Israeli startups to participate in its six-month program. More

Most victims of workplace violence are women. Immigrants and Latinos are most likely to suffer fatal accidents at work. More