Federal prosecutors charged 14 money managers, lawyers and other investors on Thursday with trading on insider information, significantly expanding a wide-ranging, multiyear investigation that is sweeping through the secretive world of hedge funds.
Preet Bharara, the U.S. Attorney for the Southern District of New York, spoke about the arrest of 14 more people on insider trading charges related to the probe into Galleon and its founder Raj Rajaratnam.
In a series of criminal complaints, which are connected to charges filed last month against the hedge fund billionaire Raj Rajaratnam, prosecutors described a network that used prepaid cellphones and met in cars to avoid detection, and that was pierced in part through surveillance and secret recordings.
The broadest of the complaints names seven defendants, including Arthur J. Cutillo, a lawyer at the prestigious firm of Ropes & Gray, who is accused of offering tips on impending takeovers that the firm worked on. The tips were then passed among a group of lawyers and traders. Some members of the ring were paid off in cash, according to the complaint. Two other defendants were charged in other complaints.
for full article see link: http://www.nytimes.com/2009/11/06/business/06insider.html?_r=1&ref=business
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