After months of the rumors hanging over the industry arrests have been made involving former executives at Diamond Capital and Level Global as part of the U.S. Department of Justice’s widening investigation into insider trading on Wall Street.
The FBI New York office confirmed the names of three people who were arrested with a fourth either under arrest or about to be as of 10:30 a.m. The arrests were made in L.A., Boston and two were taken in New York.
Bloomberg has now upped the total arrests to seven.
The Wall Street Journal, was again out front with the story Wednesday that Todd Newman, a former portfolio manager at Stamford-based Diamondback Capital Management, Anthony Chiasson, a co-founder of Greenwich-based Level Global, and John Horvath of Sigma Capital Management, were all arrested, while a fourth person was expected to surrender.
Sigma Capital is an affiliate of SAC Capital Advisors, which the Feds are reportedly interested in.
More details on the arrests and charges are expected later in the day from the U.S. Attorney of the District of Southern New York.
The Connecticut hedge fund and investment industry are facing more scrutiny over trades these days, as not only has the AUSA in Manhattan made arrests, but the U.S. Attorney for Connecticut is also conducting insider investigations.