Two New York hedge fund executives and a Massachusetts man were among four charged in a criminal complaint in federal court in Manhattan.
The seven people are accused of illegally trading shares of Dell, resulting in the massive profit.
John Hovarth was arrested in Manhattan Wednesday morning, and Todd Newman was taken into custody in Boston.
Police say 38-year-old Anthony Chiasson, who co-founded Level Global Investors in 2003, surrendered to authorities. He was not at home when FBI agents arrived at his Upper East Side apartment Wednesday.
FBI agents raided the Midtown offices of Level Global in November of 2010. Level Global managed about $4 billion in assets at the time of the raid, but it closed last year.
Todd Newman was a portfolio manager at hedge fund firm Diamondback Capital Management. Newman was placed on a leave of absence soon after the firm's Stamford offices were raided by federal agents in Nov. 2010.
Newman managed a portfolio of technology stocks for Diamondback.
John Hovarth is an employee of Sigma Capital Management, a firm affiliated with the hedge fund SAC Capital Advisors.
Also arrested was Dan Kuo, a portfolio manager with Whittier Capital in Los Angeles.
Kuo was a semiconductor analyst at Bear Stearns until 2008, when he joined Whittier. He also previously worked at Merrill Lynch and JPMorgan.
The three others are cooperating and will not be named by federal prosecutors.
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