By Patricia Hurtado and Bob Van Voris - Jan 18, 2012 9:16 AM PT
Seven people were charged in Manhattan federal court with counts including securities fraud and conspiracy as part of a five-year probe of insider trading at hedge funds by the FBI and the Justice Department.
Prosecutors say the alleged scheme, which involved trades in Dell Inc. (DELL), netted $61.8 million in illegal profits. Among those charged are Level Global Investors LP co-founder Anthony Chiasson, who along with three other suspects was taken into custody today, according to two people familiar with the matter.
Todd Newman, formerly of Diamondback Capital Management LLC, was arrested in the Boston area by the Federal Bureau of Investigation, and Jon Horvath was detained in New York, according to one of the people, who asked not to be identified because they weren’t authorized to speak publicly. Chiasson turned himself in, the second person said.
Also charged today was Danny Kuo, who was arrested in Southern California. Spyridon “Sam” Adondakis, Jesse Tortora and Sandeep Goyal have pleaded guilty and are cooperating with the probe, according to a person familiar with their cases.
Also charged today was Danny Kuo, who was arrested in Southern California. Spyridon “Sam” Adondakis, Jesse Tortora and Sandeep Goyal have pleaded guilty and are cooperating with the probe, according to a person familiar with their cases.
Goyal, a former junior technology analyst at Neuberger Berman, admitted to passing material nonpublic information to a hedge fund, according to Alexander Samuelson, a company spokesman. Goyal left the firm this month.
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