Diamondback Hedge Fund Gets U.S. Grand Jury Subpoena

[Joanne98]

Source: Bloomberg

Diamondback Capital Management LLC, one of three hedge funds raided by the FBI last week, said it received a federal grand jury subpoena and is cooperating in a U.S. probe that it said includes research consultants.

The firm, based in Stamford, Connecticut, said it was told by the government it isn’t the target of the probe and that the raid was focused on one of its portfolio managers, who was put on leave, according to a letter to sent to investors yesterday.

“The warrant appears to be focused on a single employee (a portfolio manager), as well as on a former employee who reported to that employee,” Diamondback co-founders Lawrence Sapanski and Rich Schimel said in the letter, a copy of which was obtained by Bloomberg News. “One of the principal areas on which the government appears to be focused is the use of industry research consultants.”

Hedge funds Level Global Investors LP and Loch Capital Management also had their offices raided by the FBI on Nov. 22. Janus Capital Group Inc. and Wellington Management Co. were among firms that received information requests last week as part of the government’s insider-trading investigation.



Read more: http://www.bloomberg.com/news/2010-11-30/holder-says-u-s-is-conducting-very-serious-investigation-of-wall-street.html

[Roy Rolling]

1. Not newsworthy enough

to hear on Fox News. If this were Acorn Capital Management it would be "breaking news" . . .

[Ginto]

2. A fund named after a rattlesnake. How appropriate. nt

[sarcasmo]

3. Time to start putting some of these GREEDY crooks behind bars.

[dixiegrrrrl]

4. Is this like when they closed the small banks, left the BIG bankrupt banks alone?