Securities fraud and inside trading indictment reveals $11 million profit

January 22nd, 2010 - 2:15 pm ICT by BNO News  

NEW YORK CITY (BNO NEWS) – Manhattan federal grand jury on Thursday indicts seven Wall Street professionals and attorneys for insider trading, prosecutors said.

Seven Wall Street professionals were indicted as a result of the U.S. Attorney’s Office’s ongoing investigation of insider trading at hedge funds and stock trading firms. The defendants, Zvi Goffer, Arthur Cutillo, Jason Goldfarb, Craig Drimal, Emanuel Goffer, Michael Kimelman, and David Plate were previously charged in a criminal complaint.

Thursday’s ten-count indictment includes an additional count of conspiracy to commit securities fraud.

According to documents previously filed in this and related cases as well as the indictment returned today by the Grand Jury in a Manhattan federal court:

The defendants operated an insider trading network through which Zvi Goffer obtained, passed to others, and traded on material, nonpublic information regarding mergers and acquisitions of public companies. In an effort to conceal their fraudulent schemes, several of the defendants used prepaid telephones to share inside information.

As a result of their trades of hundreds of thousands of shares of stock based on inside information, the defendants collectively earned profits of at least $11 million for themselves and their firms.

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