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Do Galleon’s tentacles reach to Chicago?

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It appears Chicago-based Balyasny Asset Management may have been drawn into the Galleon insider trading scandal.

Hedge Fund Alert is reporting that a former Balyasny analyst is drawing scrutiny from securities regulators in connection with the fast-growing insider trading case that has led to the filing of either criminal or civil charges against 20 people. The $2 billion hedge fund reportedly notified some of its investors that the Securities and Exchange Commission has been investigating the unnamed analyst’s activities for several weeks.

Balyasny, according to Hedge Fund Alert, recently invited the SEC in to review its books and records. The hedge fund has told its investors that the SEC review is focused on the former analyst and not the firm itself. The former analyst worked in Balyasny’s New York office.

Barry Colvin, Balyasny’s vice chairman, wouldn’t say when the analyst left the hedge, nor would he discuss how the fund became aware that regulators were reviewing the analyst’s activities. 

Catch of the day

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R. Allen Stanford’s indictment for his role in masterminding the second-largest Ponzi scheme ever was never in doubt, after the Securities and Exchange Commission charged him with civil fraud in February. But that’s not stopping the SEC and federal prosecutors from holding a Texas-sized shindig to trumpet their big get.

The authorities are staging a big press conference at Department of Justice headquarters to announce the filing of crimnal charges against the Texas financier, who was arrested last night in Virginia at the home of his girlfriend’s brother.

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