Federal Judge Ruled the Former Hedge-Fund Owner's Lawsuit to Proceed Following the FBI insider-trading Probe

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Ex-hedge fund owner filed lawsuit case against the Federal Bureau of Investigation will proceed according to a federal judge, who has seen a violation while the FBI authorities raid his office following an insider trading crackdown. The federal judge rejected the government's bid to drop the said lawsuit on Thursday.

According to the lawsuit, David Ganek, the hedge-fund founder claims the office raid conducted by the FBI authorities in 2010, violated his constitutional rights, Wall Street Journal reported. Defendants on the list includes, Manhattan U.S. Attorney Preet Bharara, and the rest were prosecutors and Federal Bureau of Investigation agents involved on the said insider trading raid investigation of Level Global Investors.

The ruling of the federal judge to precede the lawsuit case means the Bharara and other defendants will have to surrender the obtained "documents related to obtaining a search warrant" to Ganek's company. He also stated on his lawsuit that"fabricated evidence" may have been presented to obtain the said warrant.

According to Reuters, Level Global Investors LP was among the hedge funds raided by the FBI in 2010 as part of a federal insider-trading probe, which crashed the $4 billion hedge fund company. U.S. District Judge William Pauley in Manhattan rejected the government's request to dismissed Ganek's lawsuit, allowing him to obtain evidence to prove his "grave" allegations.

The 47 year old former owner of the hedge-fund said, "This is the first step towards holding the government accountable despite the fact that conventional wisdom has been the government can't be held accountable for troubling conduct," Daily Mail quoted. Ganek is represented by a lawyer named Anna Benvenutti Hoffmann.

Ganek's lawsuit focuses on his alleged warrant, that states, former Level Global analyst Spyridon Adondakis told FBI investigators he passed illegal tips to Ganek, Chiasson and an unnamed individual, who then traded on that information. But the lawsuit said Adondakis later testified at Chiasson's trial that he never told Ganek about the source of any inside information.

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