CNBC reports that the FBI has arrested seven fourteen more people “in the hedge fund industry” for insider trading. No word who the individuals are. Obviously the suspense is killing us, so if you happened to see your boss being escorted out of the building in cuffs, or knows someone who knows someone who did, get in touch.
Update: The Journal notes that the individuals were “primarily taken into custody in New York,” with one person arrested in New Jersey and one in Connecticut.
Update II: Included in the arrests are employees of Galleon, the Schottenfeld Group, Incremental Capital and law firm Ropes & Gray.
Update III: Some names, from Bloomberg:

Craig Drimal, who according to court documents worked at Manhattan-based Galleon, wasn’t an employee of the firm. Also arrested were Zvi Goffer, Arthur Cutillo, Jason Goldfarb, Emanuel Goffer, David Plate and Michael Kimelman. Charges against the men include conspiracy and fraud, according to documents filed in New York federal court. Names of the other seven defendants weren’t immediately available.

Manhattan U.S. Attorney Preet Bharara scheduled a press conference for noon today in New York to announce the filing of charges against 14 individuals, including attorneys and “Wall Street professionals,” for their alleged involvement in a $20 million insider trading scheme. James Margolin, a spokesman for the Federal Bureau of Investigation, said the Securities and Exchange Commission was also involved in the arrests.

Earlier: Quadrum Capital “Abruptly” Closed
Let’s Wildly Speculate About: Who’s Perp Walking Next

Comments (55)

  1. Posted by guest | November 5, 2009 at 8:28 AM

    cliff asness

  2. Posted by guest | November 5, 2009 at 8:30 AM

    ass clifness

  3. Posted by guest | November 5, 2009 at 8:31 AM

    does one of them smooth ice in his free time?

  4. Posted by guest | November 5, 2009 at 8:33 AM

    @3 don’t you dare say it.

  5. Posted by guest | November 5, 2009 at 8:36 AM

    3 are douches and the other 4 are shitheels.

  6. Posted by guest | November 5, 2009 at 8:37 AM

    East Setauket, ’nuff said.
    -ZH

  7. Posted by guest | November 5, 2009 at 8:42 AM

    I am the CEO of a hedge fund. What is insider trading?

  8. Posted by guest | November 5, 2009 at 8:44 AM

    hint: he swaths himself in fleece

  9. Posted by guest | November 5, 2009 at 8:50 AM

    hopefully they’re better looking than raj/danielle chiesi.

  10. Posted by wcburrs87 | November 5, 2009 at 8:52 AM

    I have it on good authority that at least one is Shia LaBeouf. They have the texts to prove it.

  11. Posted by guest | November 5, 2009 at 8:52 AM

    Hi, I’m the CEO of a Hedge Fund. What is the FBI?

  12. Posted by wcburrs87 | November 5, 2009 at 8:53 AM

    @11, BB2N

  13. Posted by guest | November 5, 2009 at 8:54 AM

    Hi, I am a douche. What is humor?

  14. Posted by guest | November 5, 2009 at 8:54 AM

    @9 do you think they could possibly be any worse?

  15. Posted by guest | November 5, 2009 at 8:55 AM

    “The New York office of the FBI said the individuals were primarily taken into custody in New York. One person was arrested in New Jersey and one person was arrested in Connecticut.”
    One person in CT. Could it be?

  16. Posted by guest | November 5, 2009 at 9:00 AM

    Chilton?

  17. Posted by guest | November 5, 2009 at 9:03 AM

    Craig Drimal? Huh? Who?

  18. Posted by guest | November 5, 2009 at 9:10 AM

    @15 Yes! Mr. Pequot himself!!! Someone get his lawyer to tell him if he rolls over on Mack they’ll cut his prison time…..

  19. Posted by guest | November 5, 2009 at 9:13 AM

    make ‘em squeal like pigs, hedge fund guys are big pussy’s
    -cg

  20. Posted by guest | November 5, 2009 at 9:15 AM

    DealBreaker:
    Don’t miss Dick Bove’s latest “I told you so”
    http://ftalphaville.ft.com/blog/2009/11/05/81651/bove-rred/

  21. Posted by guest | November 5, 2009 at 9:20 AM

    Ey Bess, ‘ow big er yer brists?
    ‘manda drury

  22. Posted by guest | November 5, 2009 at 9:22 AM

    art samberg?

  23. Posted by guest | November 5, 2009 at 9:25 AM

    People arrested for being in cider trading???? Jesus folks, this time of year is big in the cider business and the basis can really move around. Lansdale, PA, is the delivery point for the Nymex apple cider contract (42,000 gal/contract) and we’ve seen a 90% vol in the last couple of days so that may be part of the reason for the vol: all that action in cider trading.
    ~Rick,
    Former Head Apple Cider Trader for Lehman, Now Giving Trading Lessons from Home on Think or Swim

  24. Posted by guest | November 5, 2009 at 9:31 AM

    It’s only a matter of time Stevie. I wonder if the Hirst shark will fit in a 6×10 cell.

  25. Posted by guest | November 5, 2009 at 9:38 AM

    Bloomberg reporting 14 people arrested including Craig Drimal, Zvi Goffer, Arthur Cutillo, Jason Goldfarb, Emanuel Goffer, David Plate, Michael Kimelman, and seven others to be named later. Press conference sked for 12 noon.

  26. Posted by guest | November 5, 2009 at 9:38 AM

    Sales commission buh-bye-o

  27. Posted by guest | November 5, 2009 at 9:39 AM

    Wait a minute, wait a minute…..Are you people suggesting that well educated trading professionals might cheat in an allegedly illegal way just to win and prosper at the game of trading from time to time?
    ~The Forehead Slapper

  28. Posted by guest | November 5, 2009 at 9:41 AM

    Who got arrested at Schottenfeld? PLease tell me the CEO?

  29. Posted by guest | November 5, 2009 at 9:41 AM

    @14,
    Brooke Hundley could have done it

  30. Posted by guest | November 5, 2009 at 9:44 AM

    Who got arrested at Schottenfeld and please, please, please who got arrested in CT?
    I NEED TO KNOW!!!!

  31. Posted by guest | November 5, 2009 at 9:44 AM

    Schottenfeld. Was that the firm/guy who got profiled on page A1 of the WSJ a few months back– in a big article on smaller firms picking up talent let go from BSC/LEH/MER et al?

  32. Posted by Anal_yst | November 5, 2009 at 9:46 AM

    @1/2
    Biff Basness is not at the office today

  33. Posted by guest | November 5, 2009 at 10:00 AM

    @31 yes….US Attorney saying 14 people were arrested.

  34. Posted by guest | November 5, 2009 at 10:07 AM

    @5 Give it a rest already. It wasn’t funny the 1st time, much less now.

  35. Posted by guest | November 5, 2009 at 10:13 AM

    I’m not sure if these busts help or hurt. Sure, on one hand the government looks like it has the ability to crack down on the finance industry, as opposed to permanently sucking it’s bozack, balls-on-chin style. On other hand it’s a slippery slope since I wager every single firm on the street is on the hook for something felonious if you dig deep enough…where does it end?

  36. Posted by guest | November 5, 2009 at 10:14 AM

    Models and bottles biotches.
    - Galleon Big Swinging Dick (circa 2006)
    Put this wig on and grab your ankles.
    - Federal Pen Big Swinging Dick (circa 2010)

  37. Posted by guest | November 5, 2009 at 10:20 AM

    @34 – Are you lonely?

  38. Posted by guest | November 5, 2009 at 10:22 AM

    @33- Remember reading that and thinking “wow this place sounds shady”… guess the gut check was right.

  39. Posted by GG | November 5, 2009 at 10:22 AM

    Incremental Capital

  40. Posted by GG | November 5, 2009 at 10:22 AM

    Incremental Capital

  41. Posted by GG | November 5, 2009 at 10:24 AM

    Incremental Capital

  42. Posted by guest | November 5, 2009 at 10:26 AM

    You guys realize that at this point there’s been more arrests and accusations made for this $20Million insider trading than for everyone involved in 9/11.
    Something to ponder about
    -Guy who melts glaciers so polar bears drown

  43. Posted by Anal_yst | November 5, 2009 at 10:30 AM

    @31
    Pretty sure you’re thinking about Schoenfeld Group

  44. Posted by guest | November 5, 2009 at 10:31 AM

    @39-41 you have a point to make there, Lassie?

  45. Posted by guest | November 5, 2009 at 10:31 AM

    The firm in the Journal was Schonfeld, not Schottenfeld.

  46. Posted by guest | November 5, 2009 at 10:32 AM

    @35 it ends when Mr. Blankfein whips it out and says it ends. Hear that JD you pussy ass white ass nigga bitch.
    -1st year GS Analyst

  47. Posted by guest | November 5, 2009 at 10:34 AM
  48. Posted by guest | November 5, 2009 at 10:35 AM

    @45 no, wrong.
    The complaint alleges former Galleon and Shottenfeld Group LLC employee Zvi Goffer, and at least six other defendants knowingly conspired to defraud, make untrue statements and omit facts, as well as engage in fraudulent and deceitful acts. Mr. Goffer allegedly operated an insider-trading network, obtaining nonpublic information about companies’ planned merger and acquisitions.
    http://online.wsj.com/article/SB125742913148830787.html?mod=djemalertNEWS

  49. Posted by guest | November 5, 2009 at 10:37 AM

    do we have the full list of names yet?

  50. Posted by Anal_yst | November 5, 2009 at 10:38 AM

    @47/48 FAIL
    We’re not talking about the guys in the complaint (reading is fundamental), we’re talking about an article months back about a smaller firm (Schoenfeld, not Schottenfeld, as named in the complaint) was taking advantage of Bulge traders leaving for smaller firms.

  51. Posted by guest | November 5, 2009 at 10:38 AM

    @43- Oh, okay, gotcha. So who is Schottenfeld?
    “One gorilla, two gorrillas, who’s counting?”
    -31

  52. Posted by guest | November 5, 2009 at 10:45 AM

    they named their firm to sound like oueeerrrrrrs.

  53. Posted by guest | November 5, 2009 at 11:06 AM

    @ 42, I respect your MO.

  54. Posted by guest | November 5, 2009 at 11:17 AM
  55. Posted by guest | November 5, 2009 at 11:25 AM

    @53 Thanks, I got this new blowtorch that uses special fluid (baby seal blood) that I wanna go try out before the fairies put up cameras in Antarctica, your welcome to join.
    -42, the real cause of global warming

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