The FBI raided the offices of three hedge funds on Monday, seeking documents related to a series of insider trading investigations directed by the office of Manhattan U.S. Attorney Preet Bharara.
Bloomberg reports the offices of Level Global Investors LP and Diamondback Capital Management LLC, firms founded by alumni of SAC Capital Advisors, were searched by FBI agents. Agents also executed a search warrant at the offices of Loch Capital Management.
“The government has decided it needs to use force to obtain all the information that it needs,” Former AdvisorOne columnist Jacob Frenkel told Bloomberg. Frenkel is also a former federal prosecutor and lawyer with the Securities and Exchange Commission and a partner in the law firm of Shulman, Rogers, Gandal, Pordy & Ecker, P.A. “It has opted not to issue grand jury subpoenas but instead use the search warrant process.”