The U.S. Attorney in Manhattan said a press conference would be held at noon to announce the charges. FBI and U.S. Securities and Exchange Commission officials were also scheduled to attend.
Hedge fund manager Sam Barai, head of Barai Capital Management, has surrendered to authorities in connection with the case, a person familiar with the situation said. The person was not authorized to discuss the case publicly.
Barai, a former hedge fund managing director at Citigroup's Tribeca Global Management, launched Barai Capital Management in 2008. The fund, which focuses on technology and media companies, is in the process of closing.
Barai's fund was one of four raided by federal agents late last year when the trading probe was heating up. The raids shocked the $1.9 trillion hedge fund world, and were followed by dozen of subpoenas to hedge funds and mutual funds that did business with various expert network firms and consultants.
