For engaging in illegal hedge fund activities
The US authorities have charged seven people in what is being called a criminal club for engaging in illegal hedge fund activities associated with Dell.
The accused were allegedly operating a $62m insider trading scheme.
Preet Bharara, Manhattan U.S. Attorney general, announced the charges against the accused and it is supposed to be the largest ring identified by the US to date.
One of the accused Jon Horvath appeared for hearing with his lawyer, who defended his client, saying he had done nothing wrong and the charges will be proved false.
The members of the gang regularly exchanged lucrative information, acoording to Bharara, who revealed details of the scam.
Accused arrested on Wednesday include Anthony Chiasson and Todd Newman.
Chiasson, who co-founded the Level Global Investors hedge fund, has surrendered before the FBI in New York.
Four hedge-fund firms were raided by the FBI in 2010, but investigations into insider trading started at least eight years ago and were first made public in October 2009.
The FBI more recently conducted a probe, dubbed Operation Perfect Hedge, to examine sharing of confidential business information with hedge fund analysts and came out with the findings.