(Reuters) On Friday morning, the Justice Department will appear before Judges Reena Raggi, Denny Chin and Susan Carney of the 2nd U.S. Circuit Court of Appeals to argue that even if an FBI agent misrepresented government evidence to obtain a search warrant in 2010 against hedge fund founder David Ganek, it doesn’t really matter.
In fact, the government insinuated in its brief to the 2nd Circuit that even though prosecutors never charged Ganek with insider trading – and even though the former employee who supplied the information at the heart of the government’s application for a search warrant specifically testified that he didn’t tell the FBI Ganek knew about his insider sources – Ganek still might have known about illegal trading at his fund.
