Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ex-Galleon Trader Goffer, Four Defendants Face New Charges

Don't Miss Out —
Follow us on:
Former Galleon Employee Zvi Goffer
Zvi Goffer, 32, a former Galleon Group employee, left, leaves federal court following an arraignment hearing in New York on Nov. 5, 2009. Photographer: Daniel Acker/Bloomberg

April 8 (Bloomberg) -- Former Galleon Group LLC trader Zvi Goffer, accused of leading one of three insider-trading rings that are the subject of a nationwide U.S. probe, was indicted along with four others on additional charges.

Prosecutors filed a superseding indictment yesterday against Goffer, his brother, Emanuel Goffer, Craig Drimal, Michael Kimelman and Jason Goldfarb. All the defendants were traders, except Goldfarb, who is a lawyer.

The indictment adds new charges of securities fraud against Zvi Goffer, who now faces two counts of conspiracy and 12 counts of securities fraud. It also removes as defendants David Plate, a former trader at Schottenfeld Group LLC, and Arthur Cutillo, who worked as a lawyer with the firm Ropes & Gray LLP.

Plate and Cutillo have pleaded guilty. The others have pleaded not guilty and deny wrongdoing.

Prosecutors said the Goffer ring traded on stock tips originating from lawyers at Ropes & Gray in New York and from Gautham Shankar, an ex-trader at New York-based Schottenfeld.

The U.S. has placed Zvi Goffer at the center of the scheme and claimed his accomplices called him “Octopussy,” a reference to the 1983 James Bond movie, because of his many sources of information. Goffer’s lawyers dispute the characterization.

The case is scheduled to begin trial in U.S. District Court in Manhattan May 9.

Galleon co-founder Raj Rajaratnam is nearing the end of his insider trading trial in Manhattan federal court. Rajaratnam has pleaded not guilty, claiming his stock purchases were the result of legitimate research.

The case is U.S. v. Goffer, 10-cr-00056, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Bob Van Voris in Manhattan federal court at rvanvoris@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.