Connect with us

Hi, what are you looking for?

Jewish Business News

Court

Hedge Fund Manager David Ganek Sues Government over ‘Surreal’ FBI Raid

The raid was based on a government informant’s claim that contained a material error

David Ganek / Getty

David Ganek is suing the government for a “surreal” raid that ultimately destroyed his hedge fund, according to Business Insider.

Last December, the United States Court of Appeal, second circuit, tossed out convictions for David Ganek and Anthony Chiasson for insider trading (both men were also formerly employed by Steve Cohen’s SAC Capital, which was shuttered because of unlawful trading which did not involve Ganek and Chiasso).

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.

While the men felt “vindicated” by the verdict, Ganek is now suing for the government for raiding his hedge fund, Level Global, based only on a fabrication, for violating his rights during the raid, causing the dismissal of 65 employees and wrecking his reputation.

David Ganek described the 2010 raid “surreal” as the FBI stormed in with members of the press on hand. No arrests were made during the raid, but as a result, 65 of Level Global employees were dismissed, and some have had difficulty finding work since. Ganek and Chiasson were arrested in 2012, were convicted in 2013 and paid the SEC $20.5 million to settle the insider trading charges before the convictions were overturned.

The decision to raid the hedge fund was based on a fabricated claim made by a government informant. In the course of the trial, the claim was found to have included a material error. While hawkish U.S. Attorney Preet Bharara justified the raid on CNBC, comparing it to firefighters forcing their way into a building and later finding out there was only smoke and no fire, Ganek says he and his partners 4th and 5th amendment rights to due process and freedom from unwarranted searches, were violated,

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.