Fourteen Wall Street professionals were arrested and charged this morning as part of an investigation of an alleged $20 million insider-trading scheme. They are:
Roomy Khan, the shifty tipster who touched off the Galleon insider-trading case; her nephew, Moody’s analyst Deep Shah; Craig Drimal, who worked in Galleon’s office space; former Galleon employee and current Incremental Capital founder Zvi Goffer and his employees Emanuel Goffer, David Plate, and Michael Kimelman; Atheros executive Ali Hariri; Scottenfeld trader Gauthan Shankar; Boston hedge-fund manager Steven Fortuna; California hedge-fund managers Ali Far and Richard Choo-Beng Lee; and New York lawyers Arthur Cutillo, of Ropes & Gray, and Jason Goldfarb.
Update: The Journal scanned the complaints against the group and several of the individuals, which include bits of transcribed wiretap conversations. Our favorite bit so far is that the scam was propelled along when two of the participants “needed to replenish” after one “spent his whole chunk of change” on a honeymoon and the other “bought a new kitchen.”
Update: At the press conference with the U.S. Attorney’s Office and the SEC, Director of Enforcement Robert Khuzami reveals that inside the agency, Zvi Goffer was known as “Octopussy” because “he had his arms in so many” insider-trading schemes. He also says that at one point the defendants bit a cell-phone chip in half to destroy the evidence.