Ahead of his trial for insider trading, the array of insider information that Zvi Goffer AKA Mr. Octopussy AKA Dances with Tracksuits allegedly dipped each and every one of his tentacles in has resulted in 6 extra charges, bringing the ex-Galleon trader and founder of Incremental Capital's total to 14.
The investigation of Zvi Goffer, Jason Goldfarb, Craig Drimal, Michael Kimelman and Zvi's brother Emanuel Goffer was connected to the one that ensnared Galleon Group founder Raj Rajaratnam, whose trial is ongoing in lower Manhattan federal court. The five men weren't immediately reached for comment. The ring involving Mr. Goffer, who authorities said was nicknamed "Octopussy" because he had so many sources of information, overlapped with the chain of information leading to Mr. Rajaratnam, prosecutors have said. Overall, 19 of 26 people charged in the probe have pleaded guilty.
The 14-count indictment charges Mr. Goffer with six new counts of securities fraud relating to alleged insider trading in the stocks of 3Com Corp. and Axcan Pharma Inc. and drops one count from the indictment handed up in January 2010. Mr. Drimal is charged in four of the new counts, and Mr. Kimelman and Mr. Goldfarb in one each. The men are all charged with conspiracy to commit securities fraud as well.