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FBI Raids Hedge Funds in What Promises to Be Big Wall Street Scandal

By Allan Lengel
ticklethewire.com

The big Wall Street folks with lots of money could soon be trading in those $3,000 tailored wool suits for orange jumpsuits in what promises to be a full blown, major scandal.

F.B.I. agents on Monday raided offices of three hedge funds as part of an escalating probe into insider trading on Wall Street, the New York Times reports.

The hedge funds include Level Global Investors of New York and Diamondback Capital Management of Stamford, Conn., Loch Capital Management of Boston.

“We are conducting court-authorized search warrants as part of an ongoing investigation,” said N.Y. FBI spokesman Richard Kolko in a statement. “The matter is sealed. We have no further comment.”

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