Two hedge fund employees said to be in custody in insider probe

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Two hedge-fund employees are in custody in the U.S. probe of insider trading that has already snagged Galleon Group LLC co-founder Raj Rajaratnam, and about 50 others, according to a person familiar with the matter.

One person was arrested in Boston today by thFederal Bureau of Investigation and another in New York, according to the person, who asked not to be identified because the arrests haven’t been made public. Two more people will also surrender to authorities later today, the person said.

Securities fraud charges stemming from the probe will be announced today by the office of Manhattan U.S. Attorney Preet Bharara, the person said. Ellen Davis, a spokeswoman for the office, declined to comment on arrests.

Full story: Two Hedge Fund Employees Said in Custody in Insider Probe – Bloomberg.