NPR : News

Filed Under:

Federal Authorities Charge 7 In Insider Trading Case

Federal authorities announced charges against seven people in connection with a massive ongoing insider trading investigation that has involved some of Wall Street's most prominent money managers.

Prosecutors said those charged took part in an insider trading scheme that netted more than $61.8 million in illegal profits based on trades of a single stock.

FBI agents arrested two hedge fund executives in New York and one man outside Boston early Wednesday.

Anthony Chiasson, co-founder of the hedge fund Level Global Investors, was among those charged with conspiracy to commit securities fraud and securities fraud. He surrendered to the FBI Wednesday morning. Sigma Capital Management's Jon Horvath was arrested at his New York City home.

Level Global was a client of Primary Global Research, a so-called expert network firm that allegedly arranged contacts between company employees and hedge funds seeking illegal information. Sigma is an affiliate of the giant hedge fund company SAC Capital Advisers.

Also charged was Todd Newman, who formerly oversaw technology investments at Diamondback Capital Management. He was arrested at about 6 a.m. in the Boston suburb of Needham on charges "related to stock fraud," according to a spokesman for the FBI's Boston office.

Federal officials have arrested some four-dozen people so far as part of their insider trading investigation.

NPR's Jim Zarroli contributed to this report, which contains material from The Associated Press.

Copyright 2012 National Public Radio. To see more, visit http://www.npr.org/.

NPR

Jack Davis, Cartoonist Who Helped Found 'Mad' Magazine, Dies

Money from a job illustrating a Coca-Cola training manual became a springboard for Jack Davis to move from Georgia to New York.
NPR

Cookie Dough Blues: How E. Coli Is Sneaking Into Our Forbidden Snack

Most people know not to eat raw cookie dough. But now it's serious: 46 people have now been sickened with E. coli-tainted flour. Here's how contamination might be occurring.
WAMU 88.5

The Politics Hour – LIVE from Slim's Diner!

This special edition of the Politics Hour is coming to you live from Slim's Diner from Petworth in Northwest D.C.

NPR

Writing Data Onto Single Atoms, Scientists Store The Longest Text Yet

With atomic memory technology, little patterns of atoms can be arranged to represent English characters, fitting the content of more than a billion books onto the surface of a stamp.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.