Former Greenwich Hedge Fund Owner Loses Appeal Lawsuit After FBI Raid

GREENWICH, CT — A federal appeals court in New York City has rejected a hedge fund owner's claims that the FBI unjustly ruined his business with a raid.

The 2nd U.S. Circuit Court of Appeals in Manhattan said Tuesday that David Ganek cannot hold federal investigators liable for the November 2010 raid that preceded the closure of his Greenwich, Connecticut-based business.

The appeals court said the possibility Ganek unwittingly traded on inside information cannot defeat probable cause to search his office.

Ganek had sought unspecified damages, saying agents made misrepresentations before raiding the New York offices of Level Global Investors.

Ganek issued a statement saying the decision favors "ambitious, attention-seeking prosecutors" who "lie and leak."

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