9 Busted in Insider Trading Case
Showing its continued crack down on insider trading, today the SEC charged a pair of lawyers for tipping inside information in exchange for kickbacks as well as six Wall Street traders and a proprietary trading firm involved in a $20 million insider trading scheme.
Names among those charged on Thursday include Zvi Goffer of Incremental Capital hedge fund; Arthur Cutillo, former attorney with law firm Ropes & Gray; Jason Goldfarb, attorney; Craig Drimal, former employee in Galleon's office; and Emanuel Goffer, Michael Kimelman and David Plate, all of whom are associated with Incremental Capital.
Zvi Goffer is alleged to have led an insider trading network and paid his sources for inside trading information. Goffer used prepaid cellphones distributed to his contacts to lower the risk of getting caught according to the filed complaints.
According to the SEC's complaint, Cutillo and Goldfarb tipped material, non-public information to Zvi Goffer about the following four proposed corporate acquisitions or bids in which Ropes & Gray represented certain acquirers:
- May 17, 2007 announced acquisition of Alliance Data Systems Corp. by The Blackstone Group
- June 4, 2007 announced acquisition of Avaya by Silver Lake Partners and TPG LLP
- September 28, 2007 announced acquisition of 3Com by Bain Capital, LLC and Huawei Technologies
- November 29, 2007 announced acquisition of Axcan by TPG LLP
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