Precy Dumlao, Opalesque Asia:
The U.S. 2nd Circuit Court of Appeals on Monday upheld the 10 year conviction of stock trader Zvi Goffer nicknamed "Octopussy" because of the numerous access he had to various sources of inside information, it was learned.
In a report by the Green Field Reporter, the Federal Court has concluded that Goffer, with two others, accused in what was then believed to be the biggest insider trading case in history, were properly convicted and sentenced.
The three-judge panel of the Manhattan appeals court rejected the arguments of Goffer’s lawyers questioning the use of wiretaps in the securities fraud case. Government prosecutors were believed to have used extensive wiretaps in the insider trading probe that eventually convicted two dozen defendants, including a one-time billionaire Raj Rajaratnam who managed a $7bn hedge fund.
The Israeli-born Goffer was charged with conspiring to pay two lawyers with a bribe amounting to nearly $100,000 in 2007 and 2008 for inside tips on mergers and acquisitions. He was believed to have earned an estimated $10m from transactions resulting from the inside tips.
Prosecutors told the court that Goffer utilized prepaid mobile phones to prevent detection of the crime and destroyed the SIM cards after each successful inside tip.
Goffer, a former trader at Galleon Gro......................
To view our full article Click here