Wiretaps OKed For Second Galleon Trial

Apr 21 2011 | 10:35am ET

Five men set to face trial next month as alleged members of the Galleon Group insider-trading ring will face the same handicap as Galleon founder Raj Rajaratnam: thousands of wiretaps.

A federal judge yesterday rejected former Galleon trader Craig Drimal's bid to have the wiretaps tossed. U.S. District Judge Richard Sullivan followed the precedent set by his colleague Richard Holwell, who is presiding over the Rajaratnam trial, and, like Holwell, found some of the Federal Bureau of Investigation's practices troubling. But, he ruled, "given the wiretap's scope and the substantial manpower needed to sustain it, the court concludes that, on the whole, the wiretap was professionally conducted and generally well-executed."

The judge blasted the FBI's "apparently voyeuristic intrusion" on phone calls between Drimal and his wife, including one "deeply personal and intimate discussion about their marriage."

But Sullivan concluded that the errors were made "when agents we presumably still learning to recognize the voices of Drimal's interlocutors as well as identify their patterns of conversation."

"Having reviewed the wiretap in its entirety, the court is persuaded that in the vast majority of calls, the government's monitoring of the Drimals' spousal communications was reasonable," Sullivan wrote.

Drimal is set to go on trial alongside Zvi Goffer, the alleged head of the second of two interlocking insider-trading rings. Goffer, like Drimal, is a former Galleon trader. His brother, Emanuel, and Michael Kimelman, who both worked at Goffer's Incremental Capital hedge fund, are also charged, as is Jason Goldfarb, a lawyer at the law firm which allegedly provided many of Goffer's tips.


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.