FBI Raids Hedge Funds as Insider-Trading Probe Widens - WSJ.com

A three-year insider-trading investigation shifted into high gear Monday as government agents raided the offices of three large hedge funds, sending shock waves through the financial world.

In coordinated raids in New York, Connecticut and Massachusetts, Federal Bureau of Investigation agents seized documents at the offices of Level Global Investors LP, Diamondback Capital Management LLC and Loch Capital Management LLC.

"The FBI is executing court-authorized search warrants in an ongoing investigation," said Richard Kolko, an FBI spokesman, who declined to comment further. Diamondback and Level Global confirmed the raids and said they were cooperating with the investigation. A lawyer for Loch Capital, Leonard Pierce, declined to comment.

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FBI Raids Hedge Funds as Insider-Trading Probe Widens - WSJ.com