Call him busted. Totally busted. A trader nicknamed “Octopussy” was among nine people charged with insider trading yesterday as the feds expanded their crackdown on Wall Street. Zvi Goffer “was referred to as ‘Octopussy’ – as in the James Bond movie – because of his reputation for having arms in so many sources of information,” said Robert Khuzami, director of enforcement for the Securities and Exchange Commission. Goffer – a former employee of Galleon Group hedge-funder Raj Rajaratnam, who was busted last month on related insider-trading charges – allegedly led a group of rogue traders and lawyers on an “illegal tip-and-trade binge” that raked in upwards of $20 million." The scheme ran between at least April 2007 and May 2008. Read more: http://www.nypost.com/p/news/business/feds_bust_octopussy_insider_trader_rCMNdPbXKFdOlscUQqRntI#ixzz0WBsiH0Mp http://www.nypost.com/p/news/business/feds_bust_octopussy_insider_trader_rCMNdPbXKFdOlscUQqRntI Galleon Scandal Scorecard: Hedge Funds, Lawyers and ‘Octopussy’ Share Business ExchangeTwitterFacebook| Email | Print | A A A By Bob Van Voris Nov. 7 (Bloomberg) – Twenty people, including Galleon Group LLC co-founder Raj Rajaratnam, have been criminally charged in what federal authorities call the biggest prosecution of alleged hedge-fund insider trading in the U.S. Prosecutors in Manhattan say they have evidence from wiretaps, trading records and cooperating witnesses to prove widespread trafficking in illegal insider information. Except for those who have pleaded guilty, all those charged have denied wrongdoing and are free on bail. One suspect remains at large. The most prominent executive linked to the case, former Advanced Micro Devices Inc. Chief Executive Officer Hector Ruiz, hasn’t been charged. Those involved in the case include: Raj Rajaratnam: Galleon co-founder Rajaratnam, 52, was arrested and charged Oct. 16 with making millions of dollars by trading on insider information. Rajaratnam, born in Sri Lanka, earned a degree from the University of Sussex, England, in 1980, and an MBA in Finance from the University of Pennsylvania’s Wharton School in 1983. Rajaratnam lives in New York. Roomy Khan: A former employee of Intel Corp., Khan, 51, was convicted of wire fraud in 2001 for passing inside sales information to Galleon. She worked for Galleon in the 1990s and tried to rejoin the firm in late 2005. She has agreed to plead guilty to charges of conspiracy and securities fraud. She is cooperating with federal authorities. She lives in Fort Lauderdale, Florida. Deep Shah: A former analyst at Moody’s Investors Service, Shah, 27, is alleged to have given insider information to Khan, including Hilton Hotels Corp.’s impending takeover by Blackstone Group LP. Federal authorities believe he is now in India. Rajiv Goel: Goel, 51, a former Intel Capital employee, was arrested and charged Oct. 16 with passing inside tips about Clearwire Corp. and Intel earnings to Rajaratnam. He lives in Los Altos, California. He has an MBA in Finance from Wharton and is a friend of Rajaratnam. Danielle Chiesi: Chiesi, 43, was a consultant at New Castle Funds LLC, a former Bear Stearns Cos. hedge fund. She was arrested and charged Oct. 16 with insider trading. Prosecutors claim she passed tips along to Rajaratnam, including advance notice of a spinoff by Advanced Micro Devices. Chiesi lives in New York. Mark Kurland: Kurland, 60, co-founder of New Castle, was Chiesi’s boss. He was arrested and charged in the insider trading case Oct. 16. Kurland lives in Mt. Kisco, New York. Robert Moffat: A former executive with International Business Machines Corp., Moffat, 53, was arrested and charged Oct. 16. Federal officials claim he passed tips to Chiesi, including information about the Advanced Micro Devices spinoff and IBM earnings. He lives in Ridgefield, Connecticut. Anil Kumar: A friend of Rajaratnam, Kumar, 51, is a former director at the consulting firm McKinsey & Co. He was charged with insider trading Oct. 16. Investigators claim Kumar gave Rajaratnam inside information on the impending spinoff of Advanced Micro Devices, which was a McKinsey client. He lives in Saratoga, California. Hector Ruiz: The most prominent executive tied to the Galleon case, Ruiz, 63, is the former chief executive of Advanced Micro Devices. He is the executive prosecutors say provided insider information about the upcoming Advanced Micro Devices spinoff to Chiesi. Ruiz, who has not been charged, said he will resign as chairman of Globalfoundries Inc., the company that resulted from the spinoff, Jan. 4. He is on a leave of absence from the company. Richard Choo-Beng Lee: Lee, 53, and Rajaratnam were colleagues at the research firm Needham & Co. almost 20 years ago. Lee and Ali Far founded Spherix Capital LLC in 2008. Lee has a degree in electrical engineering from Duke University and an MBA from the University of California, Berkeley. He pleaded guilty and is cooperating with federal authorities. He lives in San Jose, California. Ali Far: Far, 47, is a former Galleon employee who founded Spherix Capital with Lee. He pleaded guilty and is cooperating with the government. Far lives in Saratoga, California. Steven Fortuna: Fortuna, a co-founder and principal of the hedge fund S2 Capital in Boston, pleaded guilty and is coopering with prosecutors. Fortuna is alleged to have traded on a tip from Chiesi about Akamai Technologies Inc. earnings. Fortuna, 47, lives in Westwood, Massachusetts. Ali Hariri: A former vice president at the semiconductor company Atheros Communications Inc., Hariri, 38, allegedly tipped Far and Lee to company earnings. He was arrested Nov. 5 and charged with conspiracy and securities fraud. Hariri lives in San Francisco. Arthur Cutillo: Cutillo, 33, a former attorney at the law firm Ropes & Gray LLP, was arrested Nov. 5 and charged with passing insider tips on deals the firm was working on involving Hilton, Avaya Inc., 3Com Corp. and Axcan Pharma Inc. Cutillo, who is alleged to have received kickbacks for the tips, lives in New Jersey. Prosecutors say he was a key source of inside information for the ring. Jason Goldfarb: Prosecutors claim Goldfarb, a 31-year-old New York lawyer, received tips from Cutillo and passed them on to Zvi Goffer. Zvi Goffer: Prosecutors claim Zvi Goffer, 33, was known within the ring as “the Octopussy,” due to his reputation for having multiple sources of inside information. Goffer, the founder of Incremental Capital LLC, previously worked at Galleon and Schottenfeld Group LLC. Prosecutors say he paid Cutillo and other tipsters and gave them prepaid mobile phones to avoid detection. He was arrested and charged Nov. 5 with fraud and conspiracy. He lives in New York. Emanuel Goffer: The brother of Zvi Goffer, Emanuel, 31, was a trader at Spectrum Trading before joining Zvi at Incremental Capital. He was arrested and charged with securities fraud and conspiracy Nov. 5. Emanuel is alleged to have traded on insider tips from Zvi. Gautham Shankar: Shankar, 35, was a trader at Schottenfeld. He pleaded guilty to securities fraud for trading on tips from Zvi Goffer and is cooperating with the authorities. He lives in New Canaan, Connecticut. David Plate: A trader formerly with Schottenfeld, Plate was arrested and charged Nov. 5 with securities fraud and conspiracy for trading on tips from Zvi Goffer. Prosecutors say he now works for Incremental and lives in New York. Craig Drimal: Drimal, 53, was arrested and charged Nov. 5 with fraud and conspiracy for trading on tips from Zvi Goffer. Prosecutors say he worked in Galleon’s office space without being employed by the firm. Michael Kimelman: Kimelman, a trader with Lighthouse Financial Group, was arrested and charged Nov. 5 with fraud and conspiracy for trading on tips from Zvi Goffer.
Excuse you. The proper way to spell that word is octo*ussy.
they give you all kinds of risk-return stats and all they do is information arbitrage, LOL…and clueless FOF analysts trying to understand how they make money so what’s next? hedge funds’ big brother mutual funds??
Octopussy-octo=HELL YEAH!