Seven plead not guilty in Galleon price fixing

Feb 04, 2010

New York, Feb. 4: Former stock trader Zvi Goffer, along with six others pleaded not guilty in the Galleon hedge fund insider trading case.

The seven indicted are mostly traders and lawyers, who appeared before Manhattan federal court Judge Richard Sullivan to answer an indictment unsealed on January 21.

They were charged with securities fraud and conspiracy to commit securities fraud.

They were arrested November 5, 2009, weeks after U.S. prosecutors arrested and charged Galleon hedge fund founder Raj Rajaratnam in the case.

The probe, described by prosecutors as the biggest hedge fund insider trading case in the United States, targeted companies and employees from Wall Street to Silicon Valley.

Goffer once worked at Galleon and later at the Incremental Capital trading firm. A U.S. Securities and Exchange Commission civil complaint described him as being nicknamed "Octopussy" in the purported insider trading network because of the breadth of his sources.

Apart from Goffer, the others who pleaded not guilty on Tuesday were three others associated with Incremental, and included Zvi Goffer’s brother Emanuel Goffer, Michael Kimelman and David Plate; Arthur Cutillo, who had been a lawyer at Ropes and Gray LLP; and another lawyer, Jason Goldfarb.

Another person indicted was Craig Drimal, whom prosecutors said worked in Galleon’s offices but was not employed there.

— Reuters

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