NYT – When investigators arrive at the door of a hedge fund with a search warrant, the consequences can be devastating. Clients fear being linked to misconduct, and even a history of strong investment returns often cannot stem the tide of withdrawals if there is even a whiff of scandal.
David Ganek and his hedge fund firm, Level Global, found out just how quickly any connection to insider trading can cause problems when the F.B.I. executed a search warrant at its offices in November 2010.
