Melvin Baker - AHN Reporter
New York, NY (AHN) - Fourteen people were accused Thursday of being part of a $20 million insider trading scheme by U.S. prosecutors.
One of those charged, Zvi Goffer, was alleged to have been the mastermind of the scheme in which millions of dollars were paid out for advance information about Wall Street trades.
Goffer was founder of Incremental Capital LLC. He worked for Galleon Group between January and August 2008 after a period at broker-dealer Schottenfeld.
Galleon founder Raj Rajaratnam and five employees were arrested last month in what federal officials claimed was the nation's largest insider trading scandal.
Others charged included: • Arthur Cutillo, an attorney at law firm Ropes & Gray LLP • Jason Goldfarb, an attorney • Emanuel Goffer, an employee of trading firm Spectrum Trading LLC • David Plate, a former employee of Schottenfeld Group LLC • Michael Kimelman, an associate at Incremental Capital • Deep Shah, a former analyst at Moody's Investors Service • Craig Drimal, an employee of Galleon Group. Raj Rajaratnam, the founder of Galleon, and five others were arrested last month in what federal prosecutors claimed was the largest insider trading scheme in the nation's history.
Charges against the men include conspiracy and fraud.
In a complaint filed in federal court in Manhattan, prosecutors said some of those charged traded on inside information regarding the proposed buyout of 3Com Corp. by Bain Capital LLC.
Prosecutors said another five people had pleaded guilty to charges stemming from the investigation: • Steven Fortuna, a managing director at hedge fund S2 Capital • Ali Far, founder of hedge fund Sperix • Richard Choo-Beng Lee, president of Sperix • Roomy Khan, a trader and hedge fund consultant • Gautham Shankar, a trader for Schottenfeld.
In a separate complaint, Ali Hariri, a vice president at Atheros Communications was charged with providing insider information about a 2008 profit warning at the firm.
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