EIC/Wall Street investigations
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Nov 22, 2010

FBI raids 3 hedge funds in insider case – WSJ

NEW YORK, Nov 22 (Reuters) – The FBI raided three hedge
funds in connection with a widening probe into insider trading,
the Wall Street Journal said on Monday.

Diamondback Capital Management LLC and Level Global
Investors LP, two Connecticut funds run by former managers of
Steven Cohen’s SAC Capital Advisors, were among those raided,
according to the report.

Nov 21, 2010

Authorities may be close to filing insider trader cases

NEW YORK (Reuters) – Federal authorities may file a series of insider trading cases against hedge fund traders, consultants and Wall Street bankers within weeks, several lawyers familiar with the situation said.

Prosecutors and securities regulators are likely to file a number of cases targeting the $1.7 trillion hedge fund industry rather than a single spectacular case, said the lawyers, who have knowledge of the investigations but did not want to be identified since details have not been made public.

Nov 21, 2010

U.S. may be close to filing insider trader cases

NEW YORK, Nov 21 (Reuters) – Federal authorities may file a
series of insider trading cases against hedge fund traders,
consultants and Wall Street bankers within weeks, several
lawyers familiar with the situation said.

Prosecutors and securities regulators are likely to file a
number of cases targeting the $1.7 trillion hedge fund industry
rather than a single spectacular case, said the lawyers, who
have knowledge of the investigations but did not want to be
identified since details have not been made public.

Nov 18, 2010

In the rough with SAC Capital

NEW YORK (Reuters) – Sam Evans may not have the most powerful or lucrative position in the hedge fund world. But his job at SAC Capital Advisors is one a lot of people, and not just financial industry types, would die for.

Unlike his co-workers, the hundreds of traders and analysts who work at Steven Cohen’s $12 billion hedge fund, Evans does not stare at computer screens, map out stock charts or work the phones for information on the markets all day.

Nov 18, 2010

Falcone’s fund faces scrutiny over trading

NEW YORK/BOSTON, Nov 18 (Reuters) – Billionaire money
manager Philip Falcone, whose borrowings from his hedge fund
have drawn regulatory scrutiny, is also cooperating with
“informal investigations” into trading at his Harbinger Capital
Partners and related entities, according to a recent regulatory
filing.

The informal investigation was disclosed earlier this month
in the third-quarter financial report for Harbinger Group Inc
(HRG.N: Quote, Profile, Research, Stock Buzz), a small publicly traded company where Falcone is
chairman and chief executive.

Nov 18, 2010

Special Report: In the rough with SAC Capital

NEW YORK (Reuters) – Sam Evans may not have the most powerful or lucrative position in the hedge fund world. But his job at SAC Capital Advisors is one a lot of people, and not just financial industry types, would die for.

Unlike his co-workers, the hundreds of traders and analysts who work at Steven Cohen’s $12 billion hedge fund, Evans does not stare at computer screens, map out stock charts or work the phones for information on the markets all day.

Nov 14, 2010

Falcone applies for another loan, clients fume

NEW YORK/BOSTON (Reuters) – Billionaire money manager Philip Falcone, facing regulatory scrutiny for having borrowed $113 million from his hedge fund, is now taking a more conventional path to getting a loan — he’s going to a bank.

Earlier this month, Falcone and his wife posted some of their “fine art” as collateral for a secured five-year loan from Bank of America, public records show.

Nov 4, 2010

FrontPoint criminal probe was a surprise

NEW YORK, Nov 4 (Reuters) – This week’s arrest of a French
doctor on charges of leaking secret information to hedge fund
FrontPoint appears to have caught the fund’s healthcare
portfolio manager by surprise.

FrontPoint healthcare portfolio manager Chip Skowron, who
was placed on leave by the Greenwich, Connecticut, hedge fund
on Tuesday, did not have a lawyer representing him until very
recently, say people familiar with the investigation.

Nov 3, 2010

Rabbi in extortion case talked about FrontPoint

NEW YORK, Nov 3 (Reuters) – The news that hedge fund
FrontPoint Partners may have traded on inside information was
made public on Tuesday, but the allegation quietly first
appeared in the court record of an unrelated criminal case
involving a Brooklyn, New York, rabbi charged with extortion.

Federal prosecutors in New York on Tuesday filed a criminal
complaint accusing French doctor Yves Benhamou of giving inside
information to a hedge fund that sources identified on Tuesday
as FrontPoint. [ID:nN02222004]

Oct 29, 2010

Special Report: A Marshall Plan for America’s housing woes

NEW YORK (Reuters) – What will it take for the U.S. housing market to shake off the gloom?

Even before some of the nation’s biggest mortgage lenders were forced to suspend foreclosure proceedings because of faulty paperwork, it was becoming clear that the Obama administration’s year-old effort to pump life into the housing market was falling short.