A lawsuit brought by a hedge fund owner who claimed that an F.B.I. raid had violated his civil rights and forced him to close his business may proceed to determine whether evidence will support his “grave allegations,” a judge said on Thursday.
The New York Times reports that Judge William H. Pauley III of United States District Court in Manhattan freed lawyers to learn more to support David Ganek’s claim that the raid in November 2010 of the New York offices of Level Global Investors as part of a federal crackdown on insider trading resulted from deliberate misrepresentations.
In a lawsuit seeking unspecified damages, Ganek asserts that fabricated evidence led a magistrate to issue a warrant approving the raid, which with the government’s heavy-handed tactics led to the closure of Level Global in February 2011. The company, which was based in Greenwich, Conn., had more than $4bn in assets under management.
“These are grave allegations,” the judge wrote. He said letting lawyers assemble more evidence would help determine whether the government’s actions had resulted from “a simple misunderstanding or whether something more troubling was afoot.”
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