The insider trading probe of SAC Capital Advisors LP led to the arrest of Sandeep Aggarwal yesterday. The latter was charged of illegally providing tips to Richard Lee, a former fund manager at SAC. Lee managed a portfolio worth US$1.25 billion at SAC and worked with the company until March of this year.

Yesterday, Aggarwal was placed under arrest by FBI agents in San Jose, California. This is a part of the US government's six year move against insider trading occurring at hedge funds according to FBI spokesperson, Peter Donald.

Sandeep Aggarwal was charged with one count of conspiracy to commit securities fraud. He was also charged of conspiracy to commit wire fraud. This was according to US Attorney Preet Bharara's office. The latter formerly worked with Collins Stewart LLC in San Francisco according to a source familiar with the matter and asked not to be named as the matter was held private.