SEVEN financial industry professionals have been charged with fraud and conspiracy worth $78m (£50.6m) gained by trading insider information in FBI crackdown Operation Perfect Hedge’s most recent arrests
This included profits of $62m due to single stock illegal trading of computer company Dell.
The “criminal club”, formed from a group of friends, was spread across five hedge funds and investment banks in the US. Four people were arrested yesterday, and the names of three previously charged others were revealed.
The defendants include Level Global Investors hedge fund co-founder Anthony Chiasson, who reportedly turned himself in to the FBI for netting $57m off the back of illegal trading on Dell.
Others charged yesterday include Todd Newman, formerly of Diamondback Capital Management, Jon Horvath of Sigma Capital Management and Danny Kuo of Whittier Trust.
Sam Adondakis, Jesse Tortora and Sandeep Goyal were arrested earlier this week and are pleading guilty.
This comes after hedge fund founder Raj Rajaratnam was last month locked up for 11 years for a $75m insider trading scam.