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News December 19, 2011 Issue

Zvi Goffer – The Rest of the Story

The Galleon beat goes on, although much of the original insider trading scandal has wound down with the plea bargaining, sentencing, and sanctioning of dozens of Galleon-related players.

One of the latest resolutions on that front is the SEC settlement with Zvi Goffer.

Goffer, you may remember, once worked at Galleon and was alleged to have run a trading ring that profited from inside information obtained about numerous impending acquisitions, information that was then traded on for substantial profit.

"Octopussy," as he was known for having multiple sources of trading information, settled several SEC civil charges for a total of $1.6 million forfeiting $1 million in profits and a quarter million dollars in interest in one case, and earlier this month forfeiting $265,709 in improper gains and $59,565 interest in another.

Goffer has been barred from the securities industry along with the fines.

Back in the summer, Goffer was sentenced to ten years in prison and assessed a $10 million criminal penalty related to accusations that he bribed deal lawyers to give him information on pending mergers and acquisitions in advance of the deals.