7 More Indicted to Galleon’s Insider Trading Case

Seven more people were indicted yesterday in the insider trading case involving the Galleon Group and numerous other hedge fund traders, lawyers and corporate executives. The seven all-stars are:

  • Zvi Goffer – previously worked at Galleon and then founder of  his own hedge fund, Incremental Capital;
  • Arthur Cutillo – a former lawyer at Ropes & Gray LLP;
  • Jason Goldfarb – an associate at a New York law firm;
  • Craig Drimal – a trader who worked in Galleon’s office space but wasn’t employed by the firm,
  • Zvi’s Goffer’s brother Emanuel Goffer – worked at Incremental Capital;
  • Michael Kimelman -  worked at Incremental Capital; and
  • David Plate – worked at Incremental Capital.

Hedge Fund Net is reporting that the defendants (which also includes Raj Rajaratnam and Danielle Chiesi) collectively made at least $11 million for themselves and their firms off their trading on insider tips. The seven can add being charged with securities fraud and conspiracy to their resumes. If convicted, they can each get 20 years in prison for each count of securities fraud and up to 5 years in prison for each count of conspiracy. Until the outcome of their trials, the New York Times has reported that each of the above all-stars are free on bail and will enter pleas at their arraignments on February 2.

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About Marissa

Marissa is a Partner and Vice President at HedgeOp Compliance, LLC. Before joining HegeOp in January 2005 as a Due Diligence Research Assistant, Marissa worked at Wave Hill as an Accounting Associate. She was responsible for handling accounts payable, processing financial statements and reconciling revenue and expense accounts. Marissa also worked as an intern at HedgeOp in the Summer of 2003. Marissa graduated with a B.S. in Business Administration with a concentration in Finance and Marketing from Fordham University in May of 2004. Marissa received the In Cursu Negotia Agendi Inter Gentes Award for International Business.

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