(Reuters) - The FBI has raided two hedge funds run by former managers of Steven Cohen's SAC Capital Advisors 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 were the subject of the raids, according to the report. Neither was immediately available for a comment.
FBI spokesman Richard Kolko told Reuters that the agency had executed search warrants in connection with an ongoing investigation. He declined to discuss the nature of the probe or the targets.
Diamondback oversees roughly $5 billion of assets and is based in Stamford, Connecticut. Level Global is based in nearby Greenwich, Connecticut.
The reported raids come as federal prosecutors are preparing to unveil a series of new insider trading cases against hedge fund traders, consultants and Wall Street bankers, several lawyers familiar with the investigation said. The charges could be filed as soon as this year, these people said.
These lawyers said investigators are likely to file several cases targeting the $1.7 trillion hedge fund industry rather than a single large case. The lawyers asked not to be named because the investigations are ongoing.
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