Feds look into lead levels in drinking glasses for kids

Federal regulators launched a probe Monday into lead levels in drinking glasses depicting comic book and movie characters, declaring the items are subject to strict standards for “children’s products.”

Testing commissioned by The Associated Press revealed that the glasses contained lead up to 1,000 times the federal limit for children’s products.

In response to word of the investigation by the U.S. Consumer Product Safety Commission, importer Vandor LLC of Utah said it would voluntarily recall the glasses, which feature colorful designs depicting the likes of Superman, Wonder Woman and characters from “The Wizard of Oz” such as Dorothy and the Tin Man.

No one would be injured by handling the glasses. The issue is whether the glasses, made in China and purchased by AP at the Warner Brothers Studios store in Burbank, Calif., comply with federal law on how much lead can be in a children’s product.

Soon after the CPSC said it was investigating, Warner Brothers said it would stop selling the glasses.

 

FBI raids 3 hedge funds in insider-trading probe

The FBI has raided three hedge funds in what one target is calling a wide-ranging probe of insider trading in the financial industry.

Bureau employees searched the New York offices of Level Global Investors LP, and the Stamford, Conn., headquarters of Diamondback Capital Management LLC, a law enforcement official said. He spoke on condition of anonymity because he was not authorized to discuss an ongoing case.

Another FBI official said the agency also searched a third site, at 30 Federal St. in Boston. Hedge fund Loch Capital Management LLC has its headquarters there.

The FBI said in a statement that it had executed search warrants in the three states “in an ongoing investigation.”

A Level Global spokesman acknowledged the raid took place Monday.

“Agents from the Federal Bureau of Investigation visited our offices this morning as part of what we believe to be a broader investigation,” the spokesman said in a statement.

The companies under investigation allegedly earned tens of millions in illegal profits using secret information about mergers, the Wall Street Journal reported this weekend.