Another top hedge fund has been ensnared in the Securities and Exchange Commission’s insider-trading crackdown.

The regulator is investigating an analyst who worked at Balyasny Asset Management until several weeks ago. The Chicago-based hedge fund is not the target of the probe and is cooperating with investigators.

The unidentified stock analyst joined Balyasny in February 2008 and it is unclear if he was terminated or left his job voluntarily. Working in Boston, he was in contact with Steven Fortuna, the co-founder of hedge fund S2 Capital Management, who has been arrested and charged as part of the Galleon Group insider-trading case, Bloomberg News reports. Originally a trader at the firm, he was reportedly demoted for underperformance.

The hedge fund learned of the SEC investigation several weeks ago and launched its own probe, Hedge Fund Alert reports. The firm informed investors of the SEC probe, and its own, this weekend.

Balyasny said it had invited the SEC to check its books as part of its investigation into the analyst.