Feds Round Up Suspects in Insider Trading Probe

The dreaded knock at the door from the FBI came this morning for a number of investment professionals who have been under investigation in the ongoing Wall Street insider trading probe. Reports indicate that four arrests were made in New York, Boston, and California on Wednesday while charges were unsealed against three others. The Wall Street Journal is reporting that Todd Newman, a former portfolio manager at Diamondback Capital Management, was one of those arrested. Diamondback, a hedge fund, was raided by the Feds in November 2010. Also arrested was Jon Horvath, a technology analyst at Sigma Capital Management, which is an affiliate of Steve Cohen's SAC Capital Management. The FBI arrived at the apartment building of Anthony Chiasson, the co-founder of hedge fund Level Global Investors, at 6 a.m. this morning, but he was not home. Chiasson later turned himself in. Level was also raided by the FBI in late 2010. The fourth arrest occurred in California, where authorities rounded up Danny Kuo, a vice president and technology portfolio manager at the Whittier Trust Co. in Pasadena. In addition to the arrests, charges were unsealed against three others. Among those named in the criminal complaint were Spyridon "Sam" Adondakis, a former Level Global analyst who worked for Chiasson, Jesse Tortora, an analyst at Diamondback Capital under Todd Newman, and Sandeep "Sandy" Goyal, who worked at Neuberger Berman. The Wall Street Journal reports that Adondakis and Tortora have been cooperating with the investigation. The FBI is expected to discuss the case at a 1 p.m. news conference today.