Thursday, 25 December 2014
Last updated 23 hours ago
Jan 5 2011 | 11:38am ET
Five defendants in the Galleon Group insider-trading case, including two former Galleon traders, will have to face trial after a judge dismissed their bid to dismiss the cases against them.
The five, led by former Galleon trader and Incremental Capital founder Zvi Goffer, saw their bid rejected today by U.S. District Judge Richard Sullivan. The federal judge also handed down some potentially worse news: As in the trial of Galleon founder Raj Rajaratnam, tens of thousands of wiretaps at the heart of the government’s case will be admitted into the Goffer trial.
According to prosecutors, Goffer was the head of one of the two interlocking insider-trading rings in the case; Rajaratnam was part of the second. Goffer allegedly gave sources prepaid cellular phones to call in their tips, paying those sources for the confidential information. Goffer’s ring allegedly turned $20 million in illegal profits.
But Goffer and his co-defendants, his brother Emanuel and Michael Kimelman, both of Incremental, Craig Drimal, a former colleague of Goffer’s at Galleon, and Jason Goldfarb, a lawyer at the law firm which allegedly provided many of Goffer’s tips, said that the case against them was based on a “convoluted theory” of insider-trading. What’s more, what evidence prosecutors did offer failed to meet the standard for insider trading.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
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.