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Apr 25 2012 | 2:14pm ET
Both of Level Global Investors' founders participated in a 2008 conference call in which confidential information about Dell Computer was discussed.
David Ganek, Anthony Chiasson and two Level Global analysts were on the call. While Chiasson and one of the former analysts on the call have been charged with insider-trading, Ganek has not previously been linked to insider information.
Ganek, like Chiasson a SAC Capital Advisors veteran, has not been charged with any wrongdoing. But he is the person referred to as Individual 4 in the criminal complaint filed against Chiasson and six others in January, the Financial Times reports.
The complaint does not say that Ganek knew the information discussed on the Aug. 27, 2008, call was confidential. On the call, which took place the day before Dell announced earnings, Spyridion Adondakis, a former Level Global analyst who is cooperating with prosecutors, said that Dell's gross margins differed from analysts' expectations. That appears to have prompted Ganek to direct Level Global's traders to boost its short interest in Dell by 250,000 shares.
Adondakis received the information from Jesse Tortora, a former analyst at Diamondback Capital Management who is also cooperating with the investigation.
Analyst Greg Brenner, identified as Individual 2 in the complaint, was also on the call. Like Ganek, he has not been accused of any wrondgoing.
Level Global was one of four hedge funds raided by the Federal Bureau of Investigation in November 2010—Diamondback was another. The $3.5 billion firm closed last March.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…