Feds: 14 charged in insider trading case

Federal prosecutors say criminal charges have been filed against 14 people, including attorneys and Wall Street professionals, in a widening $25 million insider trading case that has already snared one of the richest men in America.

The U.S. attorney in Manhattan, the FBI and the Securities and Exchange Commission scheduled a midday news conference Thursday to discuss the case.

BLOOMBERG.com reports:  Zvi Goffer, a former Galleon employee, and Craig Drimal, who worked at the Manhattan firm’s offices, were arrested today along with attorney Arthur Cutillo, Jason Goldfarb, Emanuel Goffer, David Plate and Michael Kimelman.

According to court papers filed in U.S. District Court in Manhattan, Zvi Goffer operated an insider trading network in 2007 and 2008 that included a lawyer who fed tips gleaned from his firm’s work on acquisition deals.

On Oct. 16, 2009, Raj Rajaratnam, billionaire founder of the Galleon Group, a major hedge fund,was arrested  New York. Federal prosecutors in New York say Rajaratnam, charged in a $25 million insider trading case, must remain held under a $100 million bail because he has the money and the incentive to flee.

Ex-Galleon Worker, 13 Others Charged in Insider Scam

Goffer worked at Shottenfeld Group LLC in Manhattan in 2007 and at Galleon Group for the first nine months of 2008 before he started his own trading firm, the papers said.  Read more here

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Posted by:  BBParks