Seven charged with Dell insider trading

Group of fund managers, traders and analysts involved in deal described as largest in the US to date involving a single stock

Seven men have been charged with insider trading of Dell shares, according to an article on Bloomberg.

The deal allegedly earned the group – which included fund managers and analysts – a whopping $62m (£40m), and involved five hedge funds and investment firms.

It has been described by the federal authorities as the "largest identified by the US to date" involving a single stock.

Four of the men – Anthony Chiasson, co-founder of hedge fund Level Global; Todd Newman, a portfolio manager formerly at Diamondback Capital Management; Jon Horvath, a hedge fund analyst in New York; and Danny Kuo, a fund manager for Whittier Trust in California – were taken into FBI custody yesterday, according to the article.

US Attorney Preet Bharara told a news conference that the charges painted a “stunning portrait of organised corruption on a grand scale”.

He added: “It describes a circle of friends who essentially formed a criminal club, whose purpose was profit and whose members regularly bartered lucrative inside information. It was a club where everyone scratched everyone else’s back.”

To see the whole Bloomberg article, click here.