“New York (HedgeCo.net) – Obama’s financial fraud task force yesterday unveiled a hedge fund fraud case involving a “club” of high profile NY men, charged with insider trading involving computer company DELL. Of those seven, three people have been arrested, one surrendered, and three others have not been arrested as they cooperated with authorities, according to the FBI.

“It was a club where everyone scratched everyone else’s back,” U.S. Attorney Preet Bharara said. Court documents, he added, “paint a stunning portrait of organized corruption on a broad scale.

The NY FBI reports that among the charged are:

“Hedge fund Level Global Investors LP’s co-founder Anthony Chiasson, Todd Newman, a portfolio manager formerly at Diamondback Capital Management LLC, Jon Horvath, a hedge fund analyst in New York, and Danny Kuo, a fund manager for Whittier Trust Co. in South Pasadena, California.”

Seattle Times:

“U.S. Attorney Preet Bharara  said nearly $62 million was earned through tips provided by a Dell employee to a former Dell worker who spread the information among his friends at at least five investment houses, including three hedge funds. He called it “a stunning portrait of organized corruption on a broad scale” and said it raised to 63 the number of people arrested in a government crackdown on insider trading. So far, there have been 56 convictions.”

Business Week:

“The U.S. government vowed to continue its five-year investigation into insider trading on Wall Street as it charged a fourth ring of hedge-fund traders with using illegal information to make millions of dollars.”

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