'I don't think they want the truth to come out' - -  David Ganek, Founder and Former Chief of Level Global Investors

In November 2010, the FBI conducted a raid of Level Global Investors, the hedge fund founded and operated by David Ganek. An insider trading investigation followed by the Justice Department. Shortly after the raid, massive investor redemptions forced the closure of Level Global. Ganek was ultimately never charged.

In an effort to clear his name, David Ganek filed a complaint in U.S. District Court for the Southern District Court of New York in February 2015 against U.S. Attorney Preet Bharara and federal authorities involved in the FBI raid of Level Global. The lawsuit alleges improper conduct by the defendants that led to the shuttering of his $4 billion New York hedge fund.

With celebrity attorney Barry Scheck and former federal Judge Nancy Gertner in his corner, Ganek argues in the case that the affidavit in support of putting Ganek on the search warrant contained "false statements" that Ganek knew about alleged insider trading at his firm. The complaint accuses Bharara and the other defendants of violating Ganke's constitutional right not to be deprived of property or reputation.

Now, the case is inching closer to a long-sought conclusion. After the government lost a motion to dismiss, it filed an appeal; a hearing in the 2nd Circuit Court of Appeals is expected next month.

"The case has ripened in a way that arguably was unexpected. Two years ago ... most people would've said we had very little chance of surviving what was ultimately their filing of a motion to dismiss it."  - - Ganek told "Squawk Box.

 

"I don't think they want the truth to come out," Ganek told CNBC. "And I think they are ... taking the legal limits to suppress the truth."

 

"If that office can be exposed for what I believe are serious problems and ethical issues, I think that actually has an ultimately powerful effect on the whole system," he said.

In such a fight, Ganek said, "You need resources, you need facts and you need will." Apparently Ganek has an ample supply of all three.