The US authorities have arrested two hedge fund employees in an expanding insider trading investigation that has already claimed the Indian-origin co-founder of the Galleon Group, Raj Rajaratnam.
US authorities on Wednesday announced charges against seven people in the insider trading investigation.
According to a law enforcement official, the FBI in Boston arrested Todd Newman, a former portfolio manager with the hedge fund firm Diamondback Capital Management who oversaw technology investments, The New York Post reports.
The FBI separately arrested Jon Horvath, a technology analyst with Sigma Capital Management, an affiliate of giant hedge fund SAC Capital Advisors, in Manhattan, the report said.
The report also said that Anthony Chiasson, a former hedge fund manager at Level Global Investors LP, surrendered to the FBI in New York.
In California, agents arrested Danny Kuo, vice president and technology fund manager with the Whittier Trust Co. in South Pasadena.
Also charged, according to a criminal complaint unsealed on Wednesday, are Spyridon "Sam" Adondakis, a former Level Global analyst who worked under Chiasson, Jesse Tortora, an ex-Diamondback analyst under Newman, and Sandeep "Sandy" Goyal, of mutual fund company Neuberger Berman Group LLC.
The funds weren't immediately available for comment.
The charges appear to hew to a pattern emerging in the US government's insider trading investigation, in which tight-knit circles of associates at different firms are accused of pooling their information for mutual benefit. (ANI)