FBI Arrests 3 In Insider Trading Case

Jan 18, 2012

FBI agents arrested three hedge fund executives early Wednesday in connection with a massive ongoing insider trading investigation that has involved some of Wall Street's most prominent money managers.

Todd Newman, who formerly oversaw technology investments at Diamondback Capital Management, 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.

Two other people were taken into custody in Manhattan: Anthony Chiasson, co-founder of the hedge fund Level Global Investors, and Sigma Capital Management's Jon Horvath. A fourth person was expected to be charged in the case.

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.

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

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

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