14 People Set to Be Charged in Galleon Group Insider Trading Case

Authorities have reportedly arrested an additional seven people in connection with the Galleon Group hedge fund insider trading case.

Those arrested include former employees of Galleon (Zvi Goffer) and a couple of lawyers (Arthur Cutillo, Jason Goldfarb) who were reportedly involved in the passing of illegal insider information.

The charges today seem to center around the law firm of Ropes & Gray, who reportedly advised private equity firms who took a number of companies private in 2007.

These companies included 3Com, Avaya and Axcan Pharma.

It is alleged that Mr. Cutillo, a lawyer at Ropes & Gray, passed his knowledge of forthcoming deals on to Jason Goldfarb, who in term tipped off Zvi Goffer, who was then at Galleon Group.

This news comes just a few short weeks after Raj Rajaratnam, billionaire founder of Galleon, was arrested and charged with insider trading. The government claims that Mr. Rajaratnam's company used insider information to profit in positions of Google, Akamai and Hilton Hotels, amongst others.

Five other people were arrested at the time, including Rajiv Goel (director of strategic investments at Intel Capital) and Robert Moffat (senior VP at IBM).

It should be interesting to see whether or not there are more arrests in this case..

Source: New York Times - More Individuals Are Charged With Insider Trading