FBI agents yesterday made the first arrest in what could be the biggest insider dealing probe in US history.
Don Ching Trang Chu, 56, was arrested yesterday in connection with the investigation.
He is an executive at Primary Global Research, an “expert network” firm that pairs hedge funds with current and former employees at publicly traded firms.
Top US hedge funds and mutuals have also been subpoenaed as part of a massive insider trading operation.
Hedge funds SAC Capital Advisors and Citadel, along with mutual funds Janus Capital and Wellington Management have been asked to hand over paperwork to the taskforce.
The SEC has demanded trading and communications data from a number of firms as it searches for evidence of organised insider trading rings.
No one at any of the firms receiving the requests for information from the SEC has been accused of wrongdoing.
Non-affiliated Apple analysts have also been linked with the investigation, as the SEC probes the leaking of confidential “build plans” to investors.
The news further rattled nerves on Wall Street a day after federal agents raided three hedge funds and carted away boxes of documents.
Diamondback Capital Management and Level Global Investors, both hedge funds, were both raided by the FBI on Monday. The other fund searched was Loch Capital Management, which is based in Boston.
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Subpoenaed firms include SAC Capital Advisors, Citadel, Janus Capital and Wellington Management.
On Monday the FBI raided Diamondback Capital Management and Level Global Investors.