Wednesday, 23 July 2014
Last updated 3 hours ago
Mar 15 2012 | 2:40am ET
Level Global Investors' insurer has sued the defunct hedge fund, accusing it of lying on its 2010 application for a $10 million liability policy.
According to XL Group, Level Global made "false" representations when asked if it was aware of any situation that could lead to a claim. Level Global said no; seven months later, its offices were raided by the Federal Bureau of Investigation. Ten months later, it threw in the towel.
While the once-$3.5 billion firm denied any wrongdoing, a former analyst pleaded guilty last year to passing insider information to others are the firm, and co-founder Anthony Chiasson was charged with insider-trading in January; he has pleaded not guilty.
XL has already paid $7.45 million on the liability policy, which covered the period from April 2010 through April 2011. The insurer sued the New York-based hedge fund, Chiasson, co-founder David Ganek, and three others in New York federal court.
XL is seeking the $7.45 million back, and the rescinding of the insurance policy.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…