SEVEN PEOPLE have been charged with a scheme to reap nearly $62 million in illegal profits on trades in Dell shares.

The FBI in New York arrested four people yesterday and authorities announced previously secret charges against three others.

Galleon Group hedge fund tycoon Raj Rajaratnam was arrested as part of the investigation and is now serving an 11-year prison term. Those arrested yesterday include Anthony Chiasson, who co-founded the Level Global Investors hedge fund. Todd Newman, who headed technology trading for hedge fund Diamondback Capital Management from Boston, was also arrested.

Both are accused of illegally trading ahead of computer maker Dell’s 2008 first- and second- quarter earnings announcements, netting them $57 million and $3.8 million respectively. Another defendant, Jon Horvath, is accused of making a $1 million illegal Dell trade.

The fourth person was arrested in Los Angeles earlier yesterday.

Charges were also made public against three other people who previously have pleaded guilty and are co-operating with the government. – (Reuters)