On Tape, Goffer Calls Tips 'Too Valuable' To Sell

May 24 2011 | 1:14pm ET

Prosecutors turned to the tapes in the second Galleon Group insider-trading trial yesterday, attempting to damn accused ringleader Zvi Goffer with his own words.

"I'll give you, I'll give you my information," Goffer, a former Galleon trader, tells hedge fund manager David Slaine on a Dec. 17, 2007, recording. "I'm not going to sell my information. It's too valuable."

The tape was played during Slaine's time on the stand. The former Chelsey Capital portfolio manager, who pleaded guilty in a separate insider-trading case and is cooperating with prosecutors, asked Goffer who the source was. The Incremental Capital founder wouldn't say, but told Slaine that he was a "unionized construction worker" who was "four-for-four" on his tips that year.

"I don't know what he does, how he does it, but he gets it from somewhere," Goffer is heard saying on the tape.

Slaine wore a wire for investigators as part of his cooperation agreement.

Goffer, his brother, Emanuel, and Michael Kimelman, the latter two former traders at Incremental, are accused of securities fraud and conspiracy. Goffer is accused of leading one of two interlocking insider-trading rings; the other was headed by Galleon founder Raj Rajaratnam, convicted earlier this month of insider-trading.

Prior to Slaine's testimony, defense lawyers attacked the prosecution's first witness, disbarred lawyer Brien Santarlas. Santarlas, who is also cooperating in the case, testified last week that he passed confidential information through an intermediary to Goffer, but admitted he never dealt with Goffer directly.

"You never met Zvi Goffer?" William Barzee, Goffer's lawyer, asked.

"No. I've never met him," Santarlas said.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...