Zvi "Octopussy" Goffer Found Guilty Of All Charges In Insider Trading Trial

Well that was much quicker than the Raj trial.

Zvi “Octopussy” Goffer was just found guilty of all charges in his insider trading trial.

Goffer faced numerous counts of securities fraud and conspiracy to commit securities fraud in a scheme estimated to have produced $20 million in illegal profits.

Goffer was on trial with his brother Emanuel and business partner Michael Kimelman, who were also found guilty of insider trading.

Their case was connected to the wider Galleon probe that beyond kingpin Raj Rajaratnam, has ensnared over 20 people.

The former Galleon trader, who started his own firm called Incremental Capital, was nicknamed “Octopussy” — a reference to the James Bond film — “because he had arms in so many sources of information.”

The Goffers and Kimelman were accused of trading on insider tips on deals involving Bain Capital and 3Com in 2007, and TPG Capital’s planned buyout of Axcan Pharma that same year.

The trio were said to have earned “$1.35 million on their trading ahead of the 3Com announcement.”

“Prosecutors said the three men… used information that the lawyers, then working at the Boston-based law firm Ropes & grey LLP, learned about pending acquisitions through their work there,” according to Bloomberg.

As in the Rajaratnam trial, prosecutors played a series of wiretaps for jurors.

In one recorded call from January 2008, a lawyer called Jason Goldfarb tells Goffer that they need three new cell phones, because a tipster accidentally called Goldfarb’s actual cell from one of the throw-away phones.

They now face up to 20 years in prison on some of the charges.

We’ll update as more details come in.

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