SEC Got Galleon Wiretaps By Mistake

Feb 3 2010 | 2:08pm ET

Federal prosecutors mistakenly sent some of the wiretaps at the heart of the Galleon Group insider-trading case to the Securities and Exchange Commission, the regulator and the U.S. Attorney’s office acknowledged.

The SEC, which has asked a judge to allow it to use the wiretap evidence in its civil case against the alleged Galleon conspirators, said it had not listened to the tapes and had returned them to prosecutors. But lawyers for Galleon founder Raj Rajaratnam and former Galleon employee Zvi Goffer demanded that the SEC be barred from using the evidence and demanded a hearing on the disclosure.

U.S. District Judge Jed Rakoff is expected to rule on the matter this week.

Cynthia Monaco, Goffer’s lawyer, claims prosecutors blind copied the SEC on documents being disclosed to defendants. The U.S. Attorney’s office denies doing so.

“They have already violated the dealing and disclosure requirements of Title III and are seeking an alternative means to justify production,” she wrote to the judge.

Lawyers for the defendants in the SEC case were already trying to get the wiretap evidence banned from both the criminal and civil cases, arguing that they were unlawfully obtained. The defense has also argued that the SEC cannot use wiretaps because it is not a law enforcement agency.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.