What’s the “target” of an insider trading investigation?

By Lawrence Delevingne

Tue Dec 7, 2010



Lawyers explain the difference between subjects, targets and witnesses. Is saying “I’m not a target!” a distinction without a difference?


Three of the firms involved in the recent insider trading brouhaha, Diamondback Capital Management, Level Global Investors and, most recently, Loch Capital Management, are making it very clear to investors that they are not targets of a government investigation. Just how big a distinction is it to not be a so-called "target" when you've received broad government subpoenas?

"As we have discussed with many of you, we met with the United States Attorney's Office last Tuesday and pledged our complete cooperation," explained a letter Level Global sent to investors November 29. "Today, we confirmed with the US Attorney's Office that Level Global Investors is not a target of the Government's investigation. Nor, in fact, has the Firm been alleged to have...

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