Twelfth Guilty Plea In Galleon Insider-Trading Case

Jul 21 2010 | 11:21am ET

Make it an even dozen for the Galleon Group insider-trading case prosecutors. David Plate, a former trader at Schottenfeld Group and hedge fund Incremental Capital and one of 21 people accused in the largest insider-trading scandal in U.S. history, pleaded guilty to fraud and conspiracy last week.

Plate is the 12th person to plead guilty, out of the 21 charged in the case. He was arrested on Nov. 5, one month after the first wave of arrests in the case that netted Galleon Group founder Raj Rajaratnam, who has pleaded not guilty. Plate admitted to buying 50,000 shares of Axcan Pharma after receiving a tip from other players in one of two allegedly interlocking insider-trading circles, this one allegedly led by former Galleon employee Zvi Goffer.

Plate told U.S. District Judge Richard Sullivan that he received tips about 3Com Corp. from Goffer, and that Goffer asked him to hold onto his 3Com research file to help him conceal his activities.

Plate is one of eight men accused of being part of the Goffer ring. He is also the only one of the group indicted in February to plead guilty, after initially entering a not-guilty plea with the other six. Brian Santarlas, a former lawyer at Ropes & Gray—the law firm Plate said he got the tip he traded on from—has also pleaded guilty and is cooperating with prosecutors.

Plate faces up to 25 years in prison when he is sentenced.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note