Insider trading probe widens(2)
14 people are charged with fraud and conspiracy, as an investigation into insider trading in America's hedge fund community, deepens.
Script:
Allegations of insider trading in the U.S. hedge fund community
have escalated dramatically with the arrest of 14 more suspects in
New York.
The latest charges involve some of the same companies and
individuals implicated in an earlier insider trading case involving
the Galleon Group hedge fund.
Among the accused is Zvi Goffer, manager of New York-based
trading firm Incremental Capital. Goffer is alleged to have led an
insider trading ring that netted 11 million dollars.
Federal Prosecutor, Preet Bha-rara.
SOUNDBITE: Preet Bharara, Federal Prosecutor, saying
(English)
"As we allege, some of the defendants, taking a page from the
drug dealers playbook, deliberately used anonymous, hard-to-trace,
pre-paid cellphones in order to avoid law enforcement
detection."
Raj Rajaratnam, RAJ RAJA-RATH-NUM, the billionaire founder of
the Galleon Group, is accused of masterminding an illegal
operation, which allegedly profited to the tune of 20 million
dollars.
SOUNDBITE: Preet Bharara, Federal Prosecutor, saying
(English)
"When sophisticated business people begin to adopt the methods
of common criminals, we have no choice but to treat them as
such."
Among those named in the Galleon case are executives at several
major companies, including IBM Corp and Intel Corp.
SOUNDBITE: Preet Bharara, Federal Prosecutor, saying
(English)
"When we announced our arrests first in this investigation 3
weeks ago, I said this case should be a wake-up call for Wall
Street. Well today, the alarm bells have grown only louder."
Prosecutors say 5 of the 14 people allegedly involved in the new
ring have already struck plea bargains with the U.S. Attorney's
office and the US Securities and Exchange Commission.
The insider trading scandals has so far brought charges against
some 35 Wall Street executives.
Gemma Haines, Reuters.