FBI raids three investment firms

New York:Federal agents raided the offices of three investment firms, officials said Monday, with the raids coming amid widespread speculation of hedge-fund insider trading allegations.The names of the companies were not made public, but a law enforcement official with knowledge of the investigation said the addresses of the raids matched the addresses of Diamondback Capital Management LLC in Stamford, Connecticut; Loch Capital Management in Boston, Massachusetts; and Level Global Investors LP in New York City. The official addresses of those firms were listed in a U.S. Securities and Exchange Commission statement filed on September 30.

“The FBI is conducting court-authorized search warrants in an on-going investigation,” the official told CNN, but declined to comment on whether the raids were part of a wider insider-trading investigation.Monday’s raid comes on the heels of a 2009 case, when federal prosecutors charged hedge-fund billionaire Raj Rajaratnam of the Galleon Group and others with reaping millions from illegal trading between 2006 and 2009. Rajaratnam has pleaded not guilty.Diamondback Capital Management, Level Global Investors, and Loch Capital Management could not be immediately reached for comment – Cnn