Officials: 7 More Arrests In Wall Street Insider Trading Probe
NEW YORK (CBSNewYork) -- The FBI's probe of Wall Street traders kicked up a notch Wednesday with another round of arrests.
Seven people, including the co-founder of a New York hedge fund, have been arrested in an ongoing corruption probe which authorities have considered one of the most extensive insider-trading investigations in history.
U.S. Attorney Preet Bharara said the insider trading scheme allegedly netted more than $61.8 million in illegal profits based on trades of a single stock.
1010 WINS' Juliet Papa reports
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Anthony Chiasson, co-founder of Level Global, turned himself in to the FBI Wednesday morning and faces charges of conspiracy to commit securities fraud and securities fraud.
1010 WINS' Juliet Papa reports Level Global ran aground last year under the weight of the probe -- at one point, it managed about $4 billion in assets.
Jon Horvath, an employee of Sigma Capital Management, an affiliate of hedge fund SAC Capital Advisors in Manhattan, was arrested at his New York City home.
Three people have already pleaded guilty and are cooperating with prosecutors.
"If you are engaged in insider trading, what distinguishes you from the dozens who have been charged is not that you haven't been caught; it's that you haven't been caught yet," said FBI Assistant Director-in-Charge Janice K. Fedarcyk.
More than 60 brokers and traders have been arrested in the probe, including hedge fund manager Raj Rajaratnam, who was sentenced to 11 years for stock market cheating.
