HedgeFund.net: Public news from HedgeNews
|
|
|
|
|
|
|
| Click below for information on membership options |
|
|
Seven More Indicted in Galleon Case
by Paula Schaap ,Senior Reporter , January 22, 2010
Seven more people have been indicted in the insider trading case involving Galleon Group, the largest such case involving a hedge fund firm.
The latest indictments involve two people associated with Galleon, Zvi Goffer, 33, who was employed by the firm and Craig Drimal, 53, who worked in the firm’s office, but wasn’t employed by Galleon.
The indictments, which were issued on Thursday, brings to nine the number of people indicted in the case. Galleon Group founder Raj Rajaratnam and former New Castle hedge fund official Danielle Chiesi have already been indicted and have pleaded not guilty.
Goffer, who also worked for broker-dealer Schottenfeld Group and then founded his own trading firm, Incremental Capital, is being depicted by the government as being at the center of this part of the case.
Prosecutors allege that Goffer paid sources for his inside information about the acquisitions of 3Com, Axcan Pharma, Kronos and Hilton Hotels. Two of those who allegedly took money for their information were attorneys at Ropes & Gray: Arthur Cutillo and Brien Santarlas. Cutillo, 33, was also indicted and Santarlas has pleaded guilty.
The defendants made at least $11 million for themselves and their firms off their trading on insider tips, the government alleged.
Also indicted Thursday were another attorney, Jason Goldfarb, 31; Goffer’s brother Emmanuel, 31, who worked with him at Incremental; Michael Kimelman, 38, who worked at Schottenfeld; and David Plate, 34, who also worked at Schottenfeld.
The seven were charged with securities fraud and conspiracy. They each face up to 20 years in prison for each count of securities fraud and up to five years in prison for each count of conspiracy.
By now, more than 20 people have been charged in the case. Seven have already pleaded guilty. Prosecutors have said that they are working on a plea deal with Mark Kurland, an ex-executive at hedge fund firm New Castle.
|
|
 |
|
|
|
|
|
|
|
|
POLL OF THE WEEK
July 27, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
| |
|
Disclaimer: An affiliated broker-dealer of HedgeFund.net is compensated for providing
capital introduction services to hedge funds and hedge fund managers, which may
include one or more hedge funds mentioned in this article. Hedge funds and/or hedge
fund managers mentioned in this article also may compensate HedgeFund.net for services
provided to them by HedgeFund.net
|
|
|
|
|
|
|
|
NEITHER CHANNEL CAPITAL GROUP INC.("CCG"),ITS AFFILIATES,OR CCG'S OR ITS AFFILIATES RESPECTIVE OFFICERS,DIRECTORS,AGENTS,MEMBERS,SHAREHOLDERS AND EMPLOYEES (EACH A "CCG PARTY" AND COLLECTIVELY THE "CCG PARTIES")RECOMMENDS OR SOLICITS ANY INVESTMENT BY USERS OF THIS WEB SITE,THE MATERIAL CONTAINED HEREIN IS BASED UPON INFORMATION PROVIDED BY HEDGE FUND MANAGERS AND OTHER SOURCES. THE CCG PARTIES HAVE NOT INDEPENDENTLY VERIFIED SUCH INFORMATION,DO NOT REPRESENT IT AS ACCURATE ,TRUE OR COMPLETE, MAKE NO WARRENTY, EXPRESS OR IMPLIED REGARDING IT AND SHALL NOT BE LIABLE FOR ANY LOSSED,DAMAGES,COSTS, OR EXPENSES RELATING TO ITS ADEQUANCY ,ACCURACY ,TRUTH ,COMPLETENESS, OR USE, REGISTERED USERS SHOULD NOT RELY UPON DATA TO MAKE AN INVESTMENT DECISION ,AND SHOULD NOT THAT PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE.
|
|
|
|